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The Administrative Appeals Tribunal announced that has affirmed decisions by ASIC to cancel the Australian financial services (AFS) licenses of Mark Raymund Power and Mark Power Financial Pty Ltd (MPF); and to refuse a license application made by Global Financial Markets Pty Ltd (GFM).
On 14 November 2011 ASIC cancelled the licenses of Mr Power and MPF.
The Tribunal stated that the licences should have been cancelled in order to protect the public and achieve the purposes of the legislation. The Tribunal found that Mr Power and MPF failed to comply with their obligations under the Corporations Law on multiple occasions and there were reasonable grounds to believe that Mr Power and MPF would be likely to contravene their obligations in the future.
On 20 August 2013 GFM applied to ASIC for a new AFS licence. Mr Power was the sole director of GFM. On 10 July 2014 this application was refused by ASIC.
The Tribunal found that a licence must not be granted to GFM, as it was not satisfied that GFM will comply with its obligations.
The Tribunal determined that Mr Power failed to demonstrate the level of knowledge and skills required to be a responsible manager, and still failed to understand his obligations under the financial services laws.
The Tribunal stated that “Mr Power’s past contraventions whilst operating in the financial services sector were serious indiscretions. He was motivated by the pecuniary benefits that flowed to him from appointing authorised representatives, but he was not prepared to honour his obligations with respect to the supervision and monitoring of those representatives from whom he received significant monthly payments”.
In addition, the Tribunal found that Mr Power himself had engaged in misleading and deceptive conduct.
Mr Power has 28 days in which to appeal the decision.
On 14 November 2011 ASIC cancelled the AFS licences of MPF and Mr Power.
MPF’s business, based in Adelaide, involved authorising individuals and companies to provide financial services under its AFS licence that included the provision of financial product advice, and the dealing in financial products including derivatives, foreign exchange contracts and securities.
MPF’s licence was cancelled due to concerns that MPF had not complied with its obligations as a financial services licensee and would not, in the future, comply with financial services laws.
Mr Power’s licence was cancelled due to concerns that Mr Power will not comply with his obligations as a financial services licensee by reason of his conduct in connection with MPF’s licence.
In addition, ASIC was concerned that Mr Power:
- made a misleading statement to a potential authorised representative of MPF;
- made a misleading statement on MPF’s website;
- lacked knowledge of legal requirements relating to the appointment of authorised representatives;
- failed to ensure a termination agreement with one of his authorised representatives was complied with; and
- failed to recognise deficiencies in background checks carried out by MPF regarding its authorised representatives.
On 20 August 2013 GFM applied to ASIC for a new AFS licence. Mr Power was the sole director of GFM.
On 10 July 2014 this application was refused by ASIC.
On 16 July 2014 GFM applied to the Administrative Appeals Tribunal seeking a review of ASIC’s decision to refuse GFM an AFS licence.
On 2 September 2014 Mr Power applied to the Tribunal seeking a review of ASIC’s 2011 decision to cancel the AFS licences’ of MPF and Mark Power.
A hearing was held in the Tribunal in Adelaide on 10 to 14 October 2016 and on 20 October 2016.