ASIC has banned managing director of the Guildford group of companies, Dr Robert Payne of Brighton, Victoria, from providing financial services, performing any function involved in the carrying on of a financial services business and controlling an entity that carries on a financial services business for four years.
ASIC has also cancelled the Australian Financial Services (AFS) licence of Guildfords Funds Management Pty Ltd (Guildfords) after findings of significant and systemic failures of oversight and compliance in its provision of financial services. See 24-138MR ASIC cancels licence of Guildfords Funds Management Pty Ltd.
Dr Payne was a Responsible Manager and Key Person of Guildfords with responsibility for monitoring and supervising former authorised representative Mitchell Atkins and corporate authorised representatives, Magnolia Asset Management Pty Ltd (in liquidation) (MAM) and Magnolia Investment Management Pty Ltd (in liquidation) (MIM). Dr Payne was also, along with Mr Atkins, a director of MAM.
ASIC found that Dr Payne:
lacked the competence and diligence required of a Responsible Manager as he had no control or oversight over Mr Atkins, MIM and MAM, with his failures extending to overseeing a licensee (Guildfords) that engaged in unauthorised derivatives trading (amongst other breaches), causing investor losses;
did not understand the extent of Guildfords’ failures to comply with its duties as a licensee and he sought to minimise the significance of, and his responsibility for, them; and
was involved in Guildfords’ contraventions of financial services laws.
Dr Payne’s banning is part of ASIC’s work to ensure that officers of AFS licensees maintain high standards of judgment, diligence and professionalism in discharging their duties and responsibilities.
Dr Payne has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
