The director and sole responsible manager for an Australian financial services licensee has been banned from performing the functions of an officer and a responsible manager of a financial services business for four years.
On Friday, ASIC confirmed that Chris Walters of Consolidated Mercantile Group (CMG) was found to have failed to monitor and oversee CMG’s business, including its bank accounts and client accounts, and failed to ensure that CMG complied with financial services laws between March 2019 and August 2021.
Mr Walters also failed to address concerns about CMG’s conduct raised by ASIC.
The corporate regulated deemed that the Queesland manager is not competent and not a fit and proper person to perform the roles of officer and responsible manager.
Mr Walters was a director, shareholder and the sole responsible manager of CMG from 2005 to March 2019. In March that year, he sold CMG to another company but remained on as a director and the sole responsible manager.
“ASIC expects responsible managers to be actively involved in their licensee’s financial services business, which includes being directly responsible for significant day-to-day decisions,” ASIC said in a statement.
“When Mr Walters ceased to be involved in CMG’s business in 2019, he should have arranged for a replacement responsible manager to ensure the business was being monitored and oversight was provided.”
Mr Walters has the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
The need to be seen to be doing something as a regulator, in justification of their existence and relevance
So just to confirm, the executives of ASIC, who for years failed to do anything about the big banks and AMP charging people for a service they weren’t delivering, have banned an adviser because in their view he ‘[i]failed to monitor and oversee CMG’s business, including its bank accounts and client accounts[/i]’
I assume the ASIC executives that turned a blind eye to the $6 billion worth of ‘mistakes’ made by the banks and AMP (until the Royal Commission forced their hand) have also been banned for working in a Government regulator for four years…
ASIC’s tagline is “Do as we say, not as we do!”
Big whoop! AMP and the big banks never got banned and they cost the community over $6B