On 22 October 2018, the Federal Court found that Financial Circle breached numerous financial services laws and obligations, including engaging in unconscionable conduct and failing to act in its clients’ best interests. The court ordered Financial Circle that be permanently restrained from carrying on a financial services business, providing credit or entering into a credit contract as a credit provider.
The court also ordered Financial Circle to pay civil penalties totalling $8,980,000 and to pay ASIC’s costs.
Financial Circle’s licence cancellations became effective on 19 November 2018.
ASIC issued Financial Circle with AFSL No. 302222 on 9 August 2006, authorising it to carry on a financial services business, and ACL No. 302222 on 4 January 2011, authorising it to engage in credit activities other than as a credit provider.
As Financial Circle has ceased to carry on its financial services and credit business, ASIC cancelled its AFSL under s 915B(3)(a) of the Corporations Act 2001 (Cth) and its ACL under s 54 of the National Consumer Credit Protection Act 2009 (Cth).
Edward got it right when he said, “this was all run by joshua fuoco – he will just buy another license under the guise of some other bunny that will sign on to be a responsible manager and company director and paid to turn a blind eye to everything until that all blows up again then they’ll repeat it again using another bunny.” That bunny is James Thomas Banfield and the latest biz is called State Advice.
Reported to ASIC by Dover’s Compliance team.
Why not prison time ?
What the actual f*ck did these people do? $8mil civil? That’s a serious penalty, though I’d guess it’s unders on what they have cost their clients. On the plus side it’s obviously another dodgy practice out of the industry.
What reviews & monitoring did ASIC do between 2006 & the cancellation in November 2018?
Surely all the problems didn’t just occur in the last 12 months?
What were the reasons behind the cancellation?
How did they get away with whatever they were doing for so long?
If they were audited, how thorough were the audits?
Under the old businesses he was offering rebates of insurance commissions which were paid for from Super. Its not quite legal as it can be seen as accessing super. But a 8 million dollar fine. If he had been a bank doing the same thing the fine would have been minimal and he would have been given a job in the Liberal party.
Remember when CBA pressured doctors to change their diagnoses? I think they were only required to make a $300,000 donation and ASIC didnt investigate it any further.
Whilst this guy deserves the fine and banning, why are there such double standards. An adviser misses a couple of signatures – Banned and fined millions and life destroyed.
Bank rips of millions of customers reguarly and doesnt even get a slap on the wrist.
Why dont they make penalties a percentage of revenue?
Yes , lets get fair dinkum , would they have satisfied FASEA , the most important question here or were they degree qualified ? I bet they are looking up their PI cover ?
This is the same guy that ran YesFS/WRM. Why can’t ASIC stop him?
this was all run by joshua fuoco – he will just buy another license under the guise of some other bunny that will sign on to be a responsible manager and company director and paid to turn a blind eye to everything until that all blows up again then they repeat it again using another bunny
Spot on. This is a disgrace and something needs to be done.