Joseph Longo, Chair of the Australian Securities and Investments Commission (ASIC) today made a statement at the Parliamentary Joint Committee on Corporations and Financial Services.

Mr Longo emphasized that the Senate Committee has handed down the final report in its Inquiry into the collapse of the Sterling Income Trust. He said ASIC is considering the report findings and recommendations, in particular the two addressed to ASIC.

The Committee recommended that ASIC investigate and, if appropriate, commence legal proceedings against AFSL holders that are alleged to have breached section 917B of the Corporations Act but have not consented to participate in relevant AFCA processes. ASIC is considering this recommendation.

The Committee also recommended that ASIC develop a framework to develop to promote greater awareness and understanding among retail investors and financial consumers in relation to buying financial products and services.

Mr Long noted that ASIC and Treasury already invest a considerable amount in financial literacy and consumer awareness work, including through Moneysmart. However ASIC is reviewing the financial literacy material in light of the Committee’s report, in particular in relation to supporting consumers having reasonable expectations of the regulatory regime and of ASIC.

As FX News Group has reported, ASIC has banned Mr Robert Patrick Marie for four years from providing any financial services. Mr Marie was the former managing director and responsible manager of Theta Asset Management Ltd (In Liquidation), the Responsible Entity of the Sterling Income Trust (SIT). The SIT, a registered managed investment scheme, was placed into external administration in 2019.

Mr Marie has also been banned from controlling an entity that carries on a financial services business and from performing any function involved in the carrying on of a financial services business in any capacity.

ASIC’s investigation into the conduct of a number of entities and officers within the Sterling Group of companies continues.