The corporate regulator announced it had brought civil proceedings in the Federal Court of Australia against LM Investment Management founder Peter Charles Drake and former directors Francene Maree Mulder, Eghard van der Hoven, Simon Jeremy Tickner, and Lisa Maree Darcy.
In a statement, ASIC alleged Mr Drake “used his position to gain an advantage for himself and the former directors breached their director’s duties for failing to act with the proper degree of care and diligence regarding transactions involving the LM Managed Performance Fund (MPF).”
Specifically, ASIC stated the action concerns a series of loans made to Maddison Estate Pty Ltd – which Mr Drake owned – to develop a Gold Coast property development in 2011 and 2012.
The maximum fine for a director breaching their duties is $200,000 for each contravention, ASIC stated.
As well as fines, ASIC is also seeking to disqualify Mr Drake and the former directors from managing companies and providing financial services, according to the statement.
Another product failure that will soon be used by the Labor Party and other uninformed cranks as a reason to further punish the financial advice sector.
For those clowns pranching around in Canberra have no clue as to the distinction between financial advice failure and financial product failure.
Maybe it’s time to start a campaign to seek restitution from individual sales reps everytime a product fails?
I mean, we all know the reason OneTel, Ansett and other corporate failings occurred was as a direct result of the staff who advised clients to purchase their products, right?