ASIC has banned Robert Payne, managing director of the Guildford group of companies, from providing financial services for four years.
Payne, from Brighton, Victoria, is also prohibited from performing any function in or controlling a financial services business during this period.
ASIC has also cancelled the Australian Financial Services (AFS) licence of Guildfords Funds Management (Guildfords) due to significant and systemic failures in oversight and compliance.
“Dr. Payne lacked the competence and diligence required of a responsible manager,” ASIC said in a media release.
Payne was responsible for monitoring and supervising former authorised representative Mitchell Atkins and corporate authorised representatives Magnolia Asset Management (MAM) and Magnolia Investment Management (MIM).
ASIC found that Payne had no control or oversight over Atkins, MIM, and MAM, leading to unauthorised derivatives trading and investor losses.
“He did not understand the extent of Guildfords’ failures to comply with its duties as a licensee and sought to minimise his responsibility for them,” ASIC said.
Payne’s banning is part of ASIC’s efforts to ensure high standards of judgment, diligence, and professionalism among officers of AFS licensees.
This decision is recorded on ASIC’s banned and disqualified register.
Payne has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
The Guildford group of companies includes AFS licensee Guildfords Markets and corporate authorised representative Guildfords Business Consultants.
Atkins and MAM were authorised under Guildfords’ AFS licence between September 2018 and October 2022. MIM was authorised under the licence from November 2020 to October 2022.
Payne served as a director of MAM from August 2018 to July 2022.
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