Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Non-bank director loses banning appeal

banned

banned
Reporter 1 minute read

The Administrative Appeals Tribunal has affirmed ASIC’s banning of former Provident Capital MD Michael O’Sullivan from managing corporations.

ASIC initially issued the ban – which prevents Mr O’Sullivan from managing corporations for five years and from providing financial services for seven years – on 20 February 2015 after finding he had used his position improperly to “gain financial advantages for himself” and the company.

“Provident Capital issued debentures to retail investors through their fixed-term investment portfolio and advanced the debenture funds to third-party borrowers, including property developers, on a first mortgage basis,” the regulator said.

On 2 May 2017, the Administrative Appeals Tribunal (AAT) upheld ASIC’s ruling. However, the tribunal “qualified the five-year disqualification decision by permitting Mr O'Sullivan to remain as a director of three private companies” so long as those companies’ activities relate only to Mr O'Sullivan’s immediate family.

“The behaviour of Mr O’Sullivan has fallen below the standard that is expected and required of a public company director,” the AAT said.

Mr O’Sullivan showed no “genuine contrition” for his behaviour, which “'involved either a subconscious or at times an attempt to camouflage critical information and to even completely prevent that information from being disclosed on a timely basis.”

ASIC commissioner John Price said the regulator “welcomed” the AAT’s decision.

“ASIC is committed to taking action against directors who fail to exercise care and diligence in the management of company assets,” Mr Price said.

Advertisement
Advertisement

PROMOTED FEATURES


“ASIC’s powers to disqualify directors of failed companies and to ban individuals from providing financial services are important preventative measures to safeguard the public interest.”

Mr O’Sullivan has 28 days to appeal the AAT’s decision in the Federal Court.

[Related: ASIC sounds alarm on dodgy debt firms]

Non-bank director loses banning appeal
banned
TheAdviser logo
banned

 

more from the adviser
handshake 2 Major bank announces new CEO, consumer

A big four bank has appointed a new chief executive for its consu...

digital money ta Brokerage launches insurance quote function

The major brokerage has integrated an indicative quote function w...

bank of mum and dad NAB extends COVID-19 IO loan measure

The major bank has announced a range of changes to its loan polic...

FROM THE WEB