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 4 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.

Advertisement
Advertisement

“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.

“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.”

PROMOTED CONTENT


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

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day

banned

 

more from the adviser
damian zaleski RYyr k3Ysqg unsplash

Breaking News

GetCapital launches broker platform

The business lender has rolled out a new broker platform, as it h...

fixed rate

Breaking News

Loyalty tax issue flagged to MPs

Brokers are key to holding lenders to account to ensure borrowers...

trade deal contract

Breaking News

Connective launches trail book marketplace

The aggregation group has announced a new arrangement with a spec...