ASIC obtains interim injunction against Mayfair 101 director
The Australian Securities and Investments Commission (ASIC) has obtained an interim injunction against Mayfair 101 and its managing director, James Mawhinney.
It also appointed provisional liquidators to M101 Nominees which issued M Core Fixed Income Notes which were promoted by Mayfair 101, pending an application to wind it up. The liquidators would report back by 24 September, 2020.
ASIC alleged it had been involved in breaches of corporations legislation and “there is a justifiable lack of confidence in the conduct and management of its affairs that gives rise to a risk to the public that warrants protection”.
This included the fact M101 Nominees raised $67 million from investors for the notes on the understanding of investors that there would be security for the full amount invested, which was alleged by ASIC to not be the case.
Since 13 August, Mawhinney was prevented from receiving or soliciting funds in connection with any financial product, advertising or promoting any financial product or removing any assets from Australia that had been acquired with funds received in connection with any financial product.
This included all products offered by Mayfair 101.
Lastly, the court made interim orders restraining Sunseeker Holdings from dealing with units in 14 trusts which hold property at Mission Beach and Dunk Island in Queensland, which were part of the security held on behalf of investors in the M Core Fixed Income Notes.
The matter was adjourned for a further case management hearing on a date to be fixed and the ASIC investigation was ongoing.
In April, Mayfair 101 was given an interim injunction by the Federal Court which restrained the firm from promoting debenture products and from using specific words in their advertising. This followed an application made by ASIC for false and deceptive conduct.
AUTHOR
Laura Dew
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
