Following an investigation by the Australian Securities and Investments Commission (ASIC), two financial services companies have been charged in separate proceedings with multiple criminal offences relating to the failure to lodge financial accounts with ASIC.

APC Securities Pty Ltd, formerly known as McFaddens Securities Pty Ltd, and Brava Capital Pty Ltd, formerly known as Dayton Way Securities Pty Ltd, have been charged with:

• three counts of failing to lodge a profit and loss statement and balance sheet, and
• three counts of failing to lodge an auditor’s report with the profit and loss statement and balance sheet.

ASIC alleges that APC Securities and Brava Capital each failed to lodge their financial accounts and auditor’s report for each of the financial years from 30 June 2020 to 30 June 2022.

Both matters were adjourned to 21 November 2023 for further mention.

ASIC is actively targeting breaches of financial reporting obligations as required by the Corporations Act. Failure to lodge audited financial statements may result in cancellation of a licensee’s Australian financial services (AFS) licence.

Both matters are being prosecuted by the Commonwealth Director of Public Prosecutions.

APC Securities and Brava Capital are both connected to Sydney businessman David Sutton. Mr Sutton was sole director of APC Securities and co-director of Brava Capital.

APC Securities Pty Ltd has also been known as Dayton Way Financial Pty Ltd, Avalon Pacific Capital Pty Ltd and McFaddens Securities Pty Ltd and held AFS licence number 338 943 between 16 September 2009 and 29 June 2023.

Brava Capital Pty Ltd was known as Dayton Way Securities Pty Ltd until 31 August 2023 and held AFS licence number 382 585.

The maximum penalty for a body corporate for each failure to lodge a profit and loss statement and balance sheet (s989B(2) of the Corporations Act) is $1,332,000.

The maximum penalty for a body corporate for each failure to lodge an auditor’s report with the profit and loss statement and balance sheet (s989B(3) of the Corporations Act) is $1,332,000.

ASIC permanently banned David Sutton on 29 June 2023 from providing any 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. Mr Sutton has also been disqualified from managing corporations for five years.