Two interim stop orders on Green Planet Recycling Solutions – February 17, 2025
Two interim stop orders have been made out to Green Planet Recycling Solutions Limited on the company’s public offer of redeemable preference shares.
The orders were found to be failing to:
- disclose all of the required information regarding the offer of Company Securities under the prospectus lodged January 29 to raise up to A$20,000,000 ($12,732,673) – contravening section 710 of the Corporations Act 2001; and
- preparing a target market determination in compliance with design and distribution obligations regarding the offering – contravening part 7.8A of the Corporations Act.
The interim stop orders are valid for 21 days unless removed earlier.
Registration prohibition order against Glenn Paul Meilak – February 11, 2025
A two-year registration prohibition order has been issued by the Financial Services and Credit Panel (FSCP) against financial adviser Glenn Paul Meilak after he failed to comply with the values of competence and fairness, and Standards 1, 5 and 9 in the Code of Ethics.
According to the FSCP, Malik lacked care and competence when providing advice to clients, and was therefore found to be:
- contravening the best interest duty;
- not meeting the appropriate advice obligation;
- not prioritising clients’ interests over his own; and
- making misleading statements.
Court updates
AustralianSuper fined A$27m – February 21, 2025
The Federal Court has ordered AustralianSuper, the trustee of Australia’s largest superannuation fund, to pay a A$27m penalty after failing to merge multiple member accounts.
The failings went on for almost nine years due to the fund not having appropriate systems and processes in place, which the Court called “inexcusable”, and said that it was a breach of fundamental duties and obligations.
“The failures should not have happened. The failures are serious and highly concerning.”
Justice Hespe
The civil penalty proceedings against AustralianSuper started in September 2023.
The failings occurred between July 2013 and March 2023, and approximately 90,700 members were affected. Multiple accounts should have been merged but weren’t – resulting in losses of about A$69m ($44m through multiple administration fees, insurance premiums and lost investment earnings).
Bradley Grimm’s appeal dismissed – February 19, 2025
Former Melbourne financial planner Bradley Grimm’s attempt to appeal his conviction and prison term in the Victorian Court of Appeal has been unsuccessful.
Grimm had earlier pleaded guilty to having dishonestly transferred funds between two clients’ self-managed superannuation funds (SMSF) and three companies where he was the sole director, including deceitfully transferring a client’s SMSF shares and convertible notes.
He also failed to disclose that he was banned from providing financial services by an earlier order of the Federal Court.
He was then convicted of three counts of engaging in dishonest conduct in September 2024, and sentenced to 18 months’ imprisonment, with nine months to serve, and required to be of good behavior for 18 months upon release pursuant to a recognisance of A$5,000 ($3,178).
In October 2024, Grimm sought leave to appeal against his conviction and sentence for a miscarriage of justice, arguing that the sentence was “manifestly excessive.”
Cancelled licenses
Auckland Finance Pty Ltd – February 10, 2025
The Australian credit licence has been cancelled for New South Wales-based credit provider Auckland Finance Pty Ltd due to the firm not having engaged in credit activities for some time.
LRA Corporate Pty Ltd – February 10, 2025
The Australian financial services licence has been cancelled for LRA Corporate Pty Ltd, a New South Wales-based financial services provider, after it ceased to carry on a financial services business.
ASIC news weeks 7-8
Speech
In a speech at the Conexus Financial Professional Planner 2025 Advice Policy Summit on February 10, ASIC Commissioner Alan Kirkland spoke about the complex challenge of advice, and how vital it is for clients to be able to trust financial advisers.
Even though Kirkland said that ASIC is seeing improvements from its efforts in the area, he thinks more work is still needed as the Commission continues to see bad advice that leads to poor and devastating outcomes for consumers.
He acknowledged that today’s complex financial system makes consumer protection and financial advice a complex challenge.
“Complexity can often be an obstacle to compliance, and to effective regulation. In our experience, the simpler a set of rules, the more enforceable they are. That’s not just good for consumers and investors. It’s also good for businesses and professionals, who get greater clarity about what’s required of them.”
Financial advice update
ASIC has released a new version of its Financial advice update, covering topics such as reports and reviews of recent findings, updates on the reportable situations regime and from the Financial Services and Credit Panel, and more.
Updated guidance RG 51 and RG 108
The Commission has updated Regulatory Guide 51 Applications for relief, and Regulatory Guide 108 No-action letters by centralizing related guidance, and amending outdated references.
That includes withdrawing the guidance in RG 21 How ASIC charges fees for relief applications, RG 208 How ASIC charges fees for credit relief applications, and RG 57 Notification of rights of review, and to incorporate relevant information into RG 51.
Proposed reportable situations relief
The Commission is proposing to add further relief for licensees under the reportable situations regime with the aim of reducing the reporting burden.
In the proposal, ASIC suggests giving relief from reporting certain breaches of the misleading and deceptive conduct provisions, plus certain contraventions of civil penalties.
The proposed relief will occur if:
- a breach has been rectified within 30 days of happening;
- the number of affected consumers is not more than five;
- the total financial loss or damage is not more than A$500 ($318); and
- the breach is not contravening client money reporting rules, or clearing and settlement rules.
Feedback can be submitted until March 11.
