David Fairfull charged with misleading investors – November 8, 2024
David Fairfull, former CEO of AI marketing company Metigy, has been charged with five counts of making false and misleading statements breaching section 1041E(1) of the Corporations Act 2001, and one count of dishonestly using his director’s position to gain advantage contrary to section 184(2).
Allegedly, Fairfull provided false information about the revenue and income of the Metigy group of companies to investors, plus used his director’s position to get a loan for his own personal benefit.
The matter will return to court on December 10.
Action to wind up 95 companies – November 5, 2025
The Commission has applied to the Federal Court to wind up 95 companies because the regulator “lacks confidence in the conduct and management of the affairs of the companies.” It is also concerned that some of the companies have received complaints and are connected to scam activity websites.
Two liquidators have been appointed, and a case management hearing is scheduled for December 5, 2024.
Court updates
Proceedings against director Paul Ryan dismissed – November 6, 2024
The case against Paul Ryan, director of Dixon Advisory & Superannuation Services Pty Limited, has been dismissed by the Federal Court.
ASIC earlier alleged that Ryan breached his directors’ duties when the company was approaching insolvency. It will now consider the judgment.
Receivers to ALAMMC Developments – November 5, 2024
Helen Newman and Andrew Fielding of BDO have been appointed as receivers of the property of ALAMMC Developments Pty Ltd and 12 related corporate entities by the Federal Court.
They will, among more, investigate the amount of investor funds received by ALAMMC Developments and the related entities, and notify the Court within 28 days.
The action follows an urgent action by ASIC to obtain asset preservation orders, and the appointment of the same receivers over the personal property of ALAMMC Developments director David McWilliams and his wife Laura Fullarton. Travel restriction orders have also been made out to McWilliams, who is prohibited from leaving Australia until July 1, 2025.
ASIC news week 45
Speeches
On November 7, Chair Joe Longo made the Opening Statement at the Senate Economics Legislation Committee, Supplementary Budget Estimates, and spoke about ASIC’s transformation since he become Chair in 2021. Longo said that it has become a “modern, confident and ambitious regulator” to be more effective to progress to enforcement and compliance action, and that its progress can be measured with how it has implemented 19 of the Financial Regulator Assessment Authority’s 22 areas for improvement.
Yet, he added that the Commission must “continually review, transform, and improve how we focus our efforts for greatest impact.”
In remarks at FINSIA – The Regulators in Sydney on November 8, Commissioner Alan Kirkland spoke about the Commission set its strategic priorities to reflect biggest current issues. Where one point of concern being how climate change effects the financial system.
Kirkland said that around eight in 10 Australians have experienced a natural disaster since 2019, and that “1.6 million households are now experiencing insurance affordability stress – where insurance premiums cost more than four weeks’ of gross household income.”
And with more frequent and severe extreme weather, Kirkland said that “the high number of Australians making insurance claims has already exposed cracks in the system.” He added that insurers need to be able to respond and meet those claims in a timely manner and not treat them as ordinary events.
Proposed guidance on sustainability reporting regime
Regulatory Guide 000 Sustainability reporting – a draft on the sustainability reporting regime just has been released, and ASIC’s Consultation Paper 380 Sustainability reporting is now seeking feedback on the draft.
Starting January 1, 2025, many large Australian businesses and financial institutions will need to prepare annual statutory sustainability reports on climate-related financial disclosures.
The draft includes guidance on:
- who will have to prepare a sustainability report;
- how the regime will interact with existing legal obligations;
- how ASIC will administer reporting requirements, including granting relief from the regime;
- issues in relation to the contents of the report; and
- sustainability-related financial disclosures outside the report.
The Commission is stressing all reporting entities need to start preparing for the new climate disclosure regime, and feedback on the Consultation Paper 380 can be submitted until December 19, 2024.
