ASIC has cancelled the AFSL of an OTC derivatives issuer and helped appoint a receiver to the firm and its related companies.
ASIC has successfully applied to the Federal Court to appoint receivers to Berndale Capital Securities, Berndale Capital Securities Management and Algoplus.
ASIC sought the appointment of receivers because it was concerned about Berndale's financial records; how it handled clients' money; and the adequacy of its reconciliation reports.
The regulator also purports that Berndale client monies were held outside of Australian authorised deposit-taking institutions in breach of legal requirements.
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ASIC, Berndale and its related parties appeared in Melbourne's Federal Court on April 18.
Rachel Burdett-Baker and Bruno Secatore, of Cor Cordis, have been appointed to act as joint and several receivers.
The regulator says that its investigation is continuing and that proceedings before the court are ongoing.
The receivers are expected to report back to the court by the end of May.
Berndale was an OTC derivatives AFSL holder until November last year when its licence was cancelled.
Berndale Capital Securities Management and Algoplus were former authorised representatives of Berndale.
ASIC alleges that the financial affairs of each company are "extensively intermingled with the financial affairs of Berndale."
Stavro D'Amore was the group chief executive of Berndale Capital Securities, who ASIC banned from providing financial services for a period of six years in November last year.
It said at the time that D'Amore was involved in contraventions to financial services law; is not adequately trained or is not competent to provide financial services; and is likely to contravene a financial services law.
D'Amore's LinkedIn profile shows he currently works as a waste management and public sanitation specialist.