Former Provident Capital director banned for three years
Trevor John Seymour, the former director of Provident Capital – which went into liquidation in 2012 – has been banned for failing to comply with financial services laws.
Mr Seymour's ban follows the recent banning of John Sweeny, a former non-executive director of Provident Capital, for similar offences.
According to ASIC, Mr Seymour was a director of the company from 25 May 1998 to 17 December 2013.
An investigation by the regulator found Mr Seymour breached his obligations as a director of the company and engaged in conduct that was "misleading or deceptive" in relation to financial products.
On 20 February 2015, ASIC banned managing director of Provident Capital Michael Roger O'Sullivan from managing corporations for five years and from providing financial services for seven years.
Mr O'Sullivan has sought a review of ASIC's decision in the Commonwealth Administrative Appeals Tribunal.
Provident Capital issued debentures to retail investors through its fixed-term investment portfolio and advanced the debenture funds to third-party borrowers, including property developers, on a first mortgage basis.
Provident Capital also operated a mortgage fund under a wholesale facility with Bendigo and Adelaide Bank and two managed investment schemes.
On 29 June 2012, on an application by the Australian Executor Trustees Limited, the trustee for Provident debenture holders, the court ordered that receivers be appointed to Provident. ASIC appeared as a 'friend of the court' in these proceedings.
When Provident Capital went into liquidation on 24 October 2012, more than 3,000 Provident debenture holders were owed approximately $130 million.
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