ASIC hands down 10-year adviser ban

ASIC has banned Benjamin Godfrey, the former director and responsible manager of ISG Financial Services Limited (ISG).

ASIC suspended ISG's AFSL in July 2022 after it found it failed to meet statutory audit and financial reporting lodgement obligations. The license suspension was revoked in February 2023 when ISG lodged the outstanding reports.

However, September 2022, ISG ceased paying distributions and later froze investor redemptions.

In September 2024 the Queensland Supreme Court ordered ISG, as the responsible entity for the ISG Private Access Fund and the ISG Real Estate Equity Fund, to wind up the managed investment schemes.

Godfrey had attempted to appoint receivers to the schemes the month prior, but ASIC intervened because it held concerns about, amongst other things, ISG's financial, governance and compliance positions.

ASIC said from 2019, the schemes had received around $145 million from retail and wholesale investors before being wound up.

This latest move will see Godfrey banned from providing financial services, controlling an entity that carries on a financial services business or performing any function involved in the carrying on of a financial services business, under ss920A and 920B of the Corporations Act 2001, for a period of 10 years.

ASIC found Godfrey failed to comply with financial services laws; was involved in the contravention of a financial services law by another person; and was not a fit and proper person to provide financial services, perform functions as an officer of an entity that carries on a financial services business or control an entity that carries on a financial services business.

ASIC also determined Godfrey was not adequately trained or competent to provide financial services, perform functions as an officer of an entity that carries on a financial services business or control an entity that carries on a financial services business; may be likely to contravene a financial services law, or may become involved in the contravention of a financial services law by another person, and is an insolvent under administration.

Godfrey is prohibited from providing any financial services; controlling, whether alone or in concert with one or more other entities, an entity that carries on a financial services business, and performing any function involved in the carrying on of a financial services business. This included as an officer, manager, employee, contractor or in some other capacity.

ASIC said Godfrey's banning will be in effect for 10 years from 31 March 2026.

He has the right to apply to the Administrative Review Tribunal for a review of ASIC's decision.