CLSA pays A$144,300 for providing incorrect data – August 29, 2024
CLSA Australia Pty Limited has paid a penalty of A$144,300 ($97,864) to comply with an infringement notice for failing to provide correct regulatory data to the relevant Market Operator.
According to the Markets Disciplinary Panel, CLSA failed to give post trade confirmations to its clients and immediately report off-market transactions. Between September 23, 2022 to February 3, 2023, CLSA is believed to have incorrectly tagged Orders as agency instead of principal on 9,243 occasions, and Trade Reports on 27 occasions, which generated the wrong origin of the orders.
AP Lloyds Pty Ltd to cease providing independent expert reports – August 28, 2024
A voluntary variation of the Australian financial services licence of AP Lloyds Pty Ltd will exclude the company and its corporate authorized representative, Advisory Partner Connect Pty Ltd, from providing advice as an independent expert.
With the variation, both parties will not be able to prepare or provide independent expert reports and related opinions or valuations connected with corporate transactions. However, both can still provide other services under the license.
Court updates
Tony Iervasi sentenced to 11 years imprisonment – September 2, 2024
Tony Iervasi, former Courtenay House director, has been sentenced to 11 years imprisonment, with a non-parole period of seven years, for charges relating to the operation of the Courtenay House ponzi scheme.
Justice Sweeney said that Iervasi was dishonest on an “egregious scale”, where he had established “the veneer of a successful wealth creating business … which sought to reassure and persuade victims to invest.”
Between December 2010 and April 2017, Courtenay House raised around A$180m ($122m) from 585 investors. The total net loss to the victims was A$54m ($36.6m), where about A$12m was “dishonestly obtained funds used for the offender’s benefit.”
The sentence, delivered by the Supreme Court of NSW, included a significant discount following Iervasi’s guilty plea and other factors. He pleaded guilty to:
- Four offences of engaging in dishonest conduct in relation to a financial product or financial service – breaching s1041G Corporations Act 2001 (Cth); and
- One offence of carrying on an unlicensed financial services business – breaching s 911A Corporations Act 2001 (Cth).
He also admitted guilt to two further s1041G offences which were taken into account on sentence.
Ben Jayaweera sentenced to 12 years in prison – August 27, 2024
Ben Jayaweera, former financial adviser and director of Growth Plus Financial Group Pty Ltd (in liquidation), has now been sentenced to 12 years’ imprisonment after earlier pleading guilty to 28 counts of fraud.
Between August 2013 and November 2015, Jayaweera dishonestly obtained money from 12 of his clients, which resulted in a total detriment of A$5,958,870 ($4m) over the course of 28 transactions.
He was found to be inducing clients to invest in a fund which he misrepresented to be a diversified investment fund holding assets in a range of asset classes, as well as encouraging them to establish self-managed super funds from which he later transferred money out of.
Judge Moynihan KC described the conduct as “brazen, gross, and callous” and added that Jayaweera’s actions were “not only criminal but evil, demonstrating no remorse.”
“Jayaweera’s actions betrayed the trust of his clients with some clients at or near retirement age and caused them significant financial harm.”
Sarah Court, Deputy Chair, ASIC
ASIC news August 26 – September 3
78 prosecuted for failing to assist registered liquidators
During the first six months of 2024, a total of 78 individuals were prosecuted for failing to assist registered liquidators. The prosecutions included 146 offences under the Corporations Act, and fines of more than A$430,000 ($290,797) were imposed.
The enforcement actions were related company officers and other individuals that failed to provide registered liquidators access to company books, and to submit a report on company activities and property.
Call on super funds to better engage millennials
Super funds need increase services, transparency, and improved access to information in order to better engage millennials, ASIC’s Moneysmart says.
“Better retirement outcomes and member services” is one of ASIC’s five strategic priorities for 2024-28, and new research from Moneysmart shows the “concerning trend” where close to half (48%) of surveyed millennials do not know how to maximise their pension funds. They are also less engaged with their super compared to previous generations.
The topic was discussed at a recent roundtable, where the panellists identified a significant transparency gap, and the fact that super funds are failing to meet millennials’ expectations.
“Millennials are willing to plan and engage with data for their long-term physical wellbeing and health. Now is the time to see millennials engage in the same way with their long-term financial health through their super,” said Commissioner Simone Constant.
RMIT Associate Professor Dr Angel Zhong added that “super funds need to avoid jargon and use relatable examples so people can proactively engage.”
Next step is a consumer awareness campaign from the Commission, which will be aimed at millennials.
Pilot portal for AFS applications
ASIC is piloting a new digital portal for Australian financial services (AFS) licensing, which aims to streamline the process and be more user friendly. Only invited people will be able to test the site, and users will be able to apply, verify, and cancel AFS licenses.
Those without invitation can still use the current eBusiness licensee portal, and all AFS licensees and applicants will later in Q1 2025 be transported into the new site.
