Actions against eight SMSF auditors – July 21, 2023
Eight self-managed superannuation fund (SMSF) auditors have been found breaching their obligations on auditing and assurance standards, independence requirements, and registration conditions. Some SMSF have also been found not fit and proper persons to remain registered.
Between April 1, 2023 to June 30, 2023, ASIC has:
- disqualified five SMSF auditors; and
- imposed additional conditions on three SMSF auditors.
In total, ASIC has cancelled 413 SMSF auditors as part of its compliance program. For 2023, 26 SMSF auditors have failed to meet the standards.
“The SMSF sector holds more than A$865bn ($583bn) in assets in over 600,000 funds and it is crucial that SMSF auditors comply with their regulatory obligations.”
ASIC w ASIC Commissioner Danielle Press
Cancelled license for FTX Australia – July 19, 2023
FTX Australia Pty Ltd has had its Australian financial services (AFS) licence cancelled by ASIC. Until the end of July 12, 2024, the terms of the cancellation include provisions that FTX Australia:
- may provide limited financial services that relate to the termination of existing derivatives with customers; and
- will not require the company to continue as a member of Australian Financial Complaints Authority, nor to have arrangements for compensating retail clients.
Stop order against Life Insurance product – July 18, 2023
An interim stop order has been issued on Clearview Life Assurance Limited’s Clearview ClearChoice Income Protection Cover and Accidental Income Protection Cover for not meeting requirements’ of deficiencies in the target market determination.
The interim orders will prohibit the company from engaging in retail product distribution and from providing general advice on the product for new customers – and the orders are valid for 21 days unless revoked earlier.
NSW director disqualified for three and a half years – July 17, 2023
Wayne Thomas Williamson has been disqualified from managing corporations for three and a half years after taking part in the failure of three companies. Between 1991 and 2020, Williamson was the director of Active Towing Sydney Pty Ltd, Ryde & District Smash Repairs Pty Ltd, and Active Towing Enterprises Pty Ltd, which all entered into liquidation between 2019 and 2021.
According to ASIC, Williamson failed as a director when he:
- didn’t ensure that the companies complied with their Australian Tax Office (ATO) statutory lodgement obligations;
- entered into a sale agreement that deprived Active Towing Sydney of its only income generating assets, which included allowing for the proceeds of the sale agreement, and other funds, to be withdrawn and transferred out of the company’s bank accounts;
- let Active Towing Sydney circumvent employment law obligations;
- didn’t ensure that the companies complied to keep financial records; and
- didn’t prevent Ryde & District Smash Repairs from incurring debts when there were reasonable grounds to suspect they were insolvent.
At the time of ASIC’s decision, the companies owed a combined total of A$1,833,747 ($1,248,828) to unsecured creditors, including A$1,472,006 (S1,002,473) to the ATO.
John Vaughan Markham, Williamson’s co-director, has also been disqualified from managing corporations.
In 2021, the Federal Circuit and Family Court found also found that Active Towing Sydney had been deducting amounts from the wages of one of its employees between 2015 to 2018 – a breach of the Australian Fair Work Act 2009. Williamson was also penalised for being the ‘directing mind’ of Active Towing Sydney.
Victorian director disqualified for four years – July 17, 2023
Director Matthew John Reid has been disqualified from managing corporations for four years due to his involvement in the failure of the three companies BMT Contracting Pty Ltd, BMT Communications Pty Ltd, and BMT Group Services Pty Ltd.
Between June 27, 2017 and October 18, 2021, Reid was a director of the companies, and, according to ASIC, failed as a director and misused his position when he:
- failed to ensure that BMT Group Services complied with its statutory obligations, including the lodgement of income tax returns;
- allowed BMT Group Services provide an unsecured loan to him of A$497,351 ($339,021) where no formal loan documents were executed. BMT Group Services was under financial difficulties at that time;
- caused BMT Communications to pay creditors and make re-payments on behalf of BMT Group Services and BMT Contracting;
- let BMT Group Services incur debts when it was insolvent; and
- failed to ensure that BMT Group Services and BMT Communication complied to keep accurate financial records.
At the time of the decision, the companies owed a combined total of A$1,167,251.49 ($795,649) to unsecured creditors, including A$274,985.32 ($187,439) to the Australian Taxation Office.
