Troubled investment firm sees AFSL cancelled
ASIC has cancelled the Australian financial services licence (AFSL) of troubled investment firm Endeavour.
This is because the firm is in liquidation and being wound up, an action that took place in March 2019.
The licence, which it had held since February 2003, authorised it to deal in interests in managed investment schemes and operate managed investment schemes for wholesale and retail clients.
Endeavour was the responsible entity of a registered managed investment scheme called the Investport Income Opportunity Fund. Linchpin operated an unregistered managed investment scheme, which was also called the Investport Income Opportunity Fund.
Endeavour and both of the funds were placed into liquidation in March 2019 after ASIC’s action regarding contraventions of the Corporations Act. Jason Tracy and David Orr from Deloitte were appointed as liquidators of Endeavour, Linchpin and the two Investport Income Opportunity Funds.
In January 2024, four directors of Endeavour Securities and Linchpin Capital Group were ordered to pay $390,000 by the Federal Court for multiple failings on a registered managed investment scheme.
Ian Williams, Paul Raftery, Paul Nielsen and Peter Daly were found in April 2023 to have breached their duties as officers of a responsible entity of a registered managed investment scheme and did not act in the best interests of members.
The court previously found that between 2015 and 2018, the four individuals:
- Did not take all reasonable steps to ensure that Endeavour complied with its compliance plan, obtain member approval for related party loans and issue product disclosure statements that complied with the law.
- Failed to exercise care and diligence.
- Did not act in the best interests of members of the Investport Income Opportunity Fund.
It also found Daly and Raftery improperly used their positions by receiving unsecured loans from the unregistered Investport Income Opportunity Fund for their personal use, with Daly receiving a $130,000 loan and Raftery receiving $40,000.
In November 2019, ASIC banned the four from providing any financial services each for a period of five years.
AUTHOR
Laura Dew
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this took 5 years?
5 years after they want into liquidation.
If one thing can be said about ASIC. They don't make rushed decisions.