Frozen assets of Rashid Alshakshir – March 18, 2025
The Federal Court has made orders to freeze the assets of Rashid Alshakshir, director of Lion & Horn Pty Ltd, Nohap Pty Ltd, and Indigo Group Pty Ltd (all in liquidation).
Alshakshir and various entities connected to him are being looked into in relation to ongoing investigations into the Shield Master Fund and the First Guardian Master Fund.
Other actions connected to the Shield Master Fund include:
- February 27, 2025: The Federal Court made interim orders to freeze certain assets of financial adviser Ferras Merhi and Venture Egg Financial Services Pty Ltd (formerly Ferras Merhi Pty Ltd) and Financial Services Group Australia Pty Ltd. The same is the case for Osama Saad, former director of Aus Super Compare Pty Ltd (in liquidation) and Atlas Marketing Pty Ltd (in liquidation).
- February 7, 2024: Interim stop orders were made on four product disclosure statements for classes of units of the Shield Master Fund.
- June 19, 2024: Interim orders to freeze the fund have been obtained from the Federal Court to protect investor funds while an investigation is ongoing.
- June 27, 2024: Independent party appointed to verify Shield payments.
- December 3, 2024: From the second creditors’ meeting of Keystone Asset Management Ltd (where both receivers and managers, and administrators were appointed), the administrators thought it would not be in the best interest of creditors, unit holders or underlying investors in Shield for it to be wound up. ASIC was also investigating whether “significant” investor funds could have been dissipated.
Court updates
Discontinued charges against Jennifer Hutson – March 20, 2025
The Commonwealth Director of Public Prosecutions has discontinued charges laid against former director of G8 Education Limited Jennifer Joan Hutson.
The former charges included, dishonestly failing to exercise her director’s powers, and dishonestly using her position as a director.
Active Super to pay A$10.5m penalty – March 18, 2025
The Federal Court has imposed a A$10.5m ($6.7m) penalty against Active Super following its greenwashing misconduct.
The Court found earlier in June 2024 that Active Super had contravened the law in connection with various misleading ESG claims. The company claimed to have removed investments that posed too great a risk to the environment and the community, such as gambling, coal mining, oil tar sands, and avoided investments connected to Russia.
“This is a significant penalty that sends a strong message to companies making sustainable investment claims that those claims need to reflect the true position.”
Sarah Court, Deputy Chair, ASIC
These claims were found to be false in connection with Active Super investments in various securities between February 1, 2021 to June 30, 2023.
ASIC news week 12
Update for investors in the First Guardian Master Fund
The Commission has applied to the Federal Court to appoint liquidators to Falcon Capital Limited, the responsible entity for the First Guardian Master Fund, and for orders for the liquidators to wind up the Fund. ASIC is also seeking to appoint a receiver and manager to the personal property of David Anderson, one of the company’s directors.
Earlier on February 28, ASIC obtained interim orders by the Federal Court to freeze the assets of both the company and Anderson.
The actions come after concerns about the management and operation of First Guardian. These included failing to recognise conflicts of interests, and the potential risks to investors in the form of alleged misleading information about the security of their investment and likely returns.
Updated Markets Disciplinary Panel regulatory guidance
Minor updates have been made to Regulatory Guide 216 Markets Disciplinary Panel to reflect recent Panel decisions on the application of the new penalty regime, where the penalty “significantly increased” for conduct occurring after March 13, 2019. The updates include how penalties should be considered, but also how current MDP processes can now be conducted virtually.
Amendment to regulation
A technical error has been identified in the application of indexation to certain company review fees since 2011 in relation to:
- late fees;
- 10-year upfront fees; and
- special company review fees under the Corporations (Review Fees) Regulations 2003.
The error was identified as a discrepancy, which meant that while ASIC has been applying the fees as originally intended, it did not reflect the regulations. The error has now been updated to reflect the application of the fees and the intended policy outcome.
Focus on car finance, and outcomes for regional and First Nations consumers
As earlier announced, one of ASIC’s key focus areas 2025 will be car finance, and the Commission is now launching a review into the motor vehicle finance sector – with the aim of creating better consumer outcomes, especially for those living in regional and remote locations, such as First Nations communities.
The review will focus on the compliance of lenders, brokers and other intermediaries, but also review how loan defaults, hardship practices and dispute resolution processes are handled.
The review will also include the practices of seven lenders, and ways the sector can make improvements. “We will take enforcement action to protect consumers where appropriate,” ASIC concludes.
A first brief of high-level insights from the findings will be published in the second half of 2025, then a public report with more details afterwards.
Update on action against SMSF auditors
In a new update on approved self-managed superannuation fund (SMSF) auditors, ASIC announced action against 17 SMSF auditors during the second half of 2024.
The concerns included areas with breaches of:
- professional obligations including failing to comply with auditing and assurance standards, independence requirements, continuing development requirements or holding a current policy of professional indemnity insurance;
- annual statements; or
- requirements to have the necessary practical experience for the profession.
The actions from the breaches resulted in:
- four disqualified SMSF auditors;
- two SMSF auditors being imposed with additional conditions; and
- 11 cancellations of registrations.
All 17 SMSF auditors were referred to ASIC by the Australian Taxation Office, see names and additional information here.
During the first half of 2024, ASIC took action against a total of 13 SMSF auditors.
Scam alert
ASIC has become aware of a new scam where fraudsters are trying to impersonate the Commission and are requesting payments to release funds or assets.
The scams are sent via emails, texts and phone calls, and the authority is encouraging those affected to always confirm that they are dealing legitimately with ASIC by hanging up the call and calling back on the number listed on its website.
And ASIC concludes, it “does not collect payments to enable the release of funds or assets,” and will never ask to do so.
Q&A with Joe Longo and Mark Rigotti
Following the keynote speech at the Australian Institute of Company Directors Australian Governance Summit on March 12, ASIC Chair Joe Longo sat down for a Q&A with AICD Managing Director and CEO Mark Rigotti. The conversation continued to address regulatory complexity, values, principles, expectations of directors, as well as how private capital markets aren’t growing, and what that means for directors.
