Final stop order on Indy-C-Fashion Accessories – November 29, 2024
A final stop order has been made against Indy-C-Fashion Accessories Pty Ltd, preventing the company from offering Centrepay credit arrangements to consumers in its store in Katherine in. the Northern Territory.
According to ASIC, Indy-C offered credit arrangements without making the required Target Market Determination (TMD). And when it did make a TMD, ASIC found that it “would not be reasonable to conclude” that these customers would have been suitable for set arrangements.
“Indy-C provided credit arrangements to First Nations consumers to purchase clothing and household goods via deductions from their Centrelink benefit payments in circumstances where ASIC considers it did so without considering whether the credit arrangement would be consistent with the consumer’s objectives, financial situation, and needs,” said ASIC Deputy Chair Sarah Court.
This is the second order against Indy-C-Fashion. In October, an interim stop order was made against the company on the same grounds to prevent vulnerable consumers from entering into credit arrangements to pay for goods.
Cancelled licence of RPD Group Advice – November 29, 2024
The Australian financial services licence has been cancelled for RPD Group Advice Pty Ltd following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
The Australian Financial Complaints Authority made a determination against the company in July 2024 – which it failed to pay, CSLR had to pay out A$62,421 ($40,617) to an individual instead, and then contacted ASIC.
Gym director charged with authorizing false statements – November 27, 2024
Jye Dilin Menzies-Clifton, the director of Strong and Co Australia Pty Ltd, has been charged with two counts of authorizing the making of a false statement in a document that was lodged with ASIC – a breach of section 1308(1) of the Corporations Act 2001 (Cth).
Allegedly, Menzies-Clifton authorized the deregistration of the company in November 2021,. The lodged form contained false statements such as that the company had no outstanding liabilities, and that all company members agreed to the deregistration.
Mary Asha Makeny disqualified for five years – November 27, 2024
The security industry director Mary Asha Makeny has been disqualified from managing corporations for five years relating to her involvement in three failed companies, Atlas Support Services Pty Ltd, All In One Security Pty Ltd, and MBNSS Pty Ltd – all within the security industry.
Makeny was the director of the companies between September 2020 and November 2021, and she was found to be failing her obligations when she failed to ensure that the companies:
- met their statutory lodgement requirements;
- paid their statutory debts; and
- kept proper records.
She was also found to have made illegal use of the company structures, and to be lacking control over the businesses.
At the time of the decision, the companies owed a combined total of A$1,069,095 ($693,563) to unsecured creditors.
Court updates
$A1.25 million penalty against Sasha Hopkins – November 28, 2024
Sasha Hopkins has been ordered by the Federal Court to pay A$1.25m ($812,058) and will be disqualified for four years for being involved in unlicensed conduct. His company The A Team Property Group and five of the investment schemes plus associated companies were also ordered to be wound up.
Both Hopkins and The A Team Property Group were found to be operating unregistered managed investment schemes – violating section 601ED of the Corporations Act, plus carrying on a financial services business without AFS license – violating section 911A.
Both parties were promoting joint venture property developments on social media, offering fixed returns of 25% to 50%. Many of the 217 investors were found to inexperienced investors and believed that the investments were secure. They lost a combined total of around A$27m ($17.6m).
“Mr Hopkins and the A Team Property Group failed to hold a financial services licence and operated 11 unregistered managed investment schemes. This ultimately resulted in very significant losses for investors.”
Sarah Court, Deputy Chair, ASIC
Besides the fine – which is the third highest civil penalty against an individual relating to proceedings commenced by ASIC, Hopkins was also ordered to pay A$50,000 ($32,516)of ASIC’s costs.
ASIC made an order earlier in June 2022 to freeze the assets of Hopkins, The A Team Property Group and Sash Investment Holdings Pty Ltd, and took action in July 2023 against Sasha Hopkins and The A Team Property Group.
ASIC news week 48
Speech
On November 28, Commissioner Alan Kirkland spoke at the Financial Advice Association Australia Congress where he promoted ongoing improvements in financial advice. Advice has been a topic on ASIC’s radar for some years, and its work has brought new reforms for customer best interests. That includes the superannuation sector, where the Commission recently announced a new enforcement priority in the area, where the authority will focus on ‘unscrupulous property investment schemes’.
Photo: ASIC
Yet, Kirkland said, ASIC still sees “too many examples where advice leads to poor, if not devastating, outcomes for consumers.”
He also added the importance of investigating and assessing investments properly to detect and vocalise underperformance when giving personal advice, and the need for multiple information sources.
“It is also essential advisers and their licensees ensure that conflicts of interest are managed – and that recommendations to clients aren’t being driven by one-size-fits-all business models,” he added.
Update on maintenance of regulatory guides
As announced at the latest ASIC Annual Forum, the Commission is on the path to improving its regulatory efficiency and to reduce regulatory complexity, and will, as a part of that, update some of its regulatory guides (RGs).
During 2025, ASIC intends to update and consult with stakeholders on:
- RG 53 The use of past performance in promotional material.
- RG 168 Disclosure: Product Disclosure Statements (and other disclosure obligations).
- RG 181 Licensing: Managing conflicts of interest.
- RG 183 Approval of financial services codes of conduct.
- RG 234 Advertising financial products and services (including credit): Good practice guidance.
ASIC welcomes IOSCO reports
Newly published reports by the International Organization of Securities Commissions (IOSCO) outline key challenges and opportunities for global market regulators – reports and findings which ASIC welcomes.
Two of the notable documents according to ASIC are the consultation reports on Pre-Hedging and one to enhance retail investor online safety.
As chair of the Committee on Regulation of Market Intermediaries and permanent board member of IOSCO, ASIC says it has “played a significant role in developing the consultation reports,” and that its focus is aligned with IOSCO’s work to foster a safer and more transparent environment for retail investors.
IOSCO is the leading international policy forum for securities regulators and the global standard setter for financial markets regulation, and its membership regulates more than 95% of the world’s securities markets in some 130 jurisdictions.
