ASIC has accepted an enforceable undertaking (EU) from Mr Gregory Michael Gordon O’Shaughnessy, 34, of Adelaide, South Australia.
Mr O’Shaughnessy is the sole director of Newstar Securities Pty Ltd (in liquidation). ASIC’s investigations revealed that from 13 February 2006 to 29 August 2007, Mr O’Shaughnessy, in his capacity as sole director of Newstar Securities Pty Ltd (Newstar):
- failed to ensure Newstar provided reports on the steps taken to implement the recommendations of its external consultant (consistent with the conditions of its AFSL), following the consultant’s review of client files;
- failed to ensure that Newstar complied with condition 18 of its AFSL by lodging the Audit Opinion for the financial year ended 30 June 2006;
- failed to ensure Newstar lodged its profit and loss statement, balance sheet or auditors report for the financial year ended 30 June 2006 as required by the Corporations Act (the Act);
- failed to ensure Newstar’s representatives (Mr Roger Charles Gordon and Mr Colin Douglas Turner) complied with financial services laws (specifically relating to the particular disclosure of associations and interests and misleading or deceptive conduct); and
- failed to ensure that the financial services covered by its AFSL were provided efficiently, honestly and fairly, as required by the Act.
Mr O’Shaughnessy has undertaken that, for a period of ten years, he will not:
- carry on a financial services business;
- hold out that he holds an AFSL;
- provide a financial service;
- apply to ASIC under s911A of the Act for an AFSL;
- become an authorised representative of an AFSL holder;
- hold out that he is an authorised representative for an AFSL holder;
- act as a responsible officer of an AFSL holder;
- act as a director or hold any other managerial role with an AFSL holder; and
- act as a director or hold any other managerial role with a corporate representative of an AFSL holder.
Background
ASIC has also banned Mr Gordon from providing financial services for eight years from 13 December 2007 and banned Mr Turner from providing financial services for six years from 20 December 2007. Mr Turner has appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision.
On 29 August 2007, the Federal Court of Australia ordered that Newstar Securities Pty Ltd be wound up and appointed Mr Bruce James Carter as liquidator.
On 3 September 2007 Newstar Securities Pty Ltd requested that ASIC cancel its AFSL.