The Australian financial services licence of a Sydney-based managed investment scheme operator was cancelled by ASIC.
The corporate regulator cancelled the licence of Australian Mutual, which operated a number of investment schemes.
The cancellation allows Australian Mutual to provide services which are necessary to wind up Australian Pink Diamond Fund, Grange Capital Management Growth Plus Fund and Accelerated Trend Hedge Fund.
This licence cancellation also included the Trident Global Growth Fund.
|Sponsored by Allianz Retire+|
Help your clients find their 'mojo' in retirement
The cancellation comes after ASIC banned Australian Mutual's joint executive officers and directors Jeffrey Worboys and Matthew Barnett from providing financial service for six years.
ASIC found Worboys and Barnett did not exercise care or diligence to the degree required and failed to act in the best interests of the members of the Courtenay House Capital Investment.
The two men allegedly failed to ensure the persons responsible for trading funds had the requisite qualifications and experience to manage a foreign exchange and derivatives fund.
Worboys and Barnett did not appeal their bans to the Administrative Appeals Tribunal.
ASIC has separately taken action to wind up Courtenay House Capital Trading Group and Courtenay House.
Said Jahani and John McIerney of Grant Thornton are the joint liquidators of both companies.
Australian Mutual held an AFS licence since February 2006.
Peter Krejci of BRI Ferrier was appointed voluntary administrator of Australian Mutual on June 28 2019.
ASIC commissioner Danielle Press said of the licence cancellation: "A key priority for ASIC is ensuring that responsible entities take their duty to act in the best interest of investors seriously. This duty of loyalty has been described as the 'most fundamental' rule of trust law."
She explained that there is a community expectation that responsible entities will fully comply with best interest duty and ASIC is prepared to take legal action wherever necessary to enforce that.