After investigations by ASIC, two financial service companies have been charged separately with multiple criminal offences for their failure to lodge financial accounts with ASIC.
APC Securities and Brava Capital, formerly known as McFaddens Securities and Dayton Way Securities, respectively, have been charged with three counts of failing to lodge financial statements and another three counts of failing to lodge auditor’s reports.
ASIC alleged that these two companies, which appeared in the Sydney Downing Centre Local Court on Oct. 24, failed to submit their financial accounts and auditor's reports for each financial year from June 30, 2020, to June 30, 2022.
Both companies are connected to Sydney businessman David Sutton, who is sole director of APC Securities and co-director of Brava Capital. Sutton was permanently banned by ASIC on June 29 from engaging in any financial services and participating in any activities related to financial services businesses. He was also barred from managing corporations for five years.
Both cases have been adjourned to Nov. 21 for further mention and are being prosecuted by the Commonwealth Director of Public Prosecutions.
In a media statement, ASIC stated that it is actively pursuing breaches of financial reporting obligations as mandated by the Corporations Act.
Failing to submit audited financial statements may lead to the revocation of an Australian financial services (AFS) licence.
For each instance of not filing a profit and loss statement and balance sheet, the maximum penalty for a body corporate under s989B(2) of the Corporations Act is $1,332,000, and the same penalty applies for not submitting an auditor’s report alongside the profit and loss statement and balance sheet, as per s989B(3) of the Corporations Act.
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