The regulator has also banned the director of the firm linked to the Mayfair 101 Group from controlling a financial services entity.
In a statement issued on Thursday, ASIC confirmed that it had cancelled the AFS licence of Quattro Capital Group and banned its sole director and responsible manager, Grant Stewart Gibson from controlling a financial services entity for a period of eight years.
The Perth-based firm was the AFS licensee of a number of authorised representatives, including representatives who were part of the Mayfair 101 Group and issued debentures promoted by Mayfair 101.
ASIC found that Quattro had failed to maintain the competence to provide financial services, to properly supervise its representatives and ensure they were adequately trained or competent to provide the financial services covered by its licence and to have adequate human and financial resources, and risk management systems.
Additionally, the regulator said that the firm had failed to comply with financial services laws by not lodging its annual financial statements with ASIC for the 2016-2020 financial years in the required timeframe and had not ensured that the financial services covered by its licence were provided efficiently, honestly and fairly.
“ASIC also found that Mr Gibson was involved in Quattro’s contraventions of financial services laws and is not competent to control an entity that carries on a financial services business,” the regulator said.
“The cancellation of Quattro’s AFS licence and the banning of Mr Gibson is part of ASIC’s work to ensure that licensees adequately supervise their representatives and comply with their obligations.”
ASIC noted that Quattro and Mr Gibson have the right to seek a review of the decision in the Administrative Appeals Tribunal.
The Federal Court found in March last year that four Mayfair 101 Group entities had engaged in misleading or deceptive conduct and made false or misleading representations when promoting Mayfair’s debenture products.
The Mayfair 101 Group entities were subsequently ordered to pay penalties of $30 million for misleading advertising.
James Mawhinney, an individual representative of Quattro, was also restrained from advertising and soliciting funds in relation to financial products for 20 years by the Federal Court in April last year.
Mayfair 101 and Mr Mawhinney have both appealed against the $30 million penalty and ban.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
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