Mayfair 101 director ban overturned

ASIC/mayfair-101/james-mawhinney/

16 September 2022
| By Laura Dew |
image
image
expand image

The 20-year ban on Mayfair 101 director, James Mawhinney, has been overturned by the Federal Court.

The ban in April 2021 restrained him from advertising investments and raising funds from the public through financial products.

Mawhinney had appealed the ban and it was overruled by the Court on the ground that he was “denied procedural fairness because ASIC [the Australian Securities and Investments Commission] had not sought certain findings of contraventions, but the primary judge made and relied on those findings in making the restraining order”.

Pending the final determination of the matter, the Court reinstated the interim injunctions made in August 2020 which restrained him, or any company of which he was an officer or shareholder, from:

  • Receiving or soliciting funds in connection with any financial product
  • Advertising or promoting any financial product, and
  • Removing from Australia any assets acquired with funds received in connection with any financial product.

ASIC deputy chair, Sarah Court, said almost 500 people who had invested in the Mayfair 101 group were still owed $211 million.

“ASIC took this case to protect the public from the risk of significant financial harm arising from what we believed to be serious misconduct. Mayfair, under Mr Mawhinney’s direction, marketed high-risk products as low risk.

“ASIC will carefully consider today’s judgment and evaluate our next steps. Meanwhile, as part of today’s decision, the Court has reinstated injunctions we had previously obtained against Mr Mawhinney. These measures will prevent further investor harm while proceedings are ongoing.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS