Action against companies in the GFG Alliance Group – June 27, 2025
ASIC is taking action in the Supreme Court of NSW against three companies for failing to lodge annual financial reports with the Commission. They are; included:
- Liberty Primary Metals Australia, and Tahmoor Coal: for failing to lodge the 2024 financial year.
- Liberty Bell Bay: for failing to lodge financial reports for the years ending in 2021, 2022, 2023, and 2024.
The three companies is part of GFG Alliance, which is a global group of businesses that focus on industries such as steel, aluminium, and energy.
Brite Advisors’ auditor admits failures – June 27, 2025
David Makowa of DM Advisory Services has admitted to failing to properly carry out the FY19, FY20, FY21 and FY22 audits of Brite Advisors Pty Ltd, and will surrender his registration as a company auditor and never re-apply.
ASIC is currently investigating Brite Advisor and cancelled its AFS license in May after a payment of compensation by the Compensation Scheme of Last Resort.
The Federal Court also set out interim dates for ASIC to freeze the company’s funds and assets in October 2023.
Cairns pawnbroker convicted and fined A$12,000 – June 26, 2025
Cairns pawnbroker Cash Lenders in Cairns, QLD, has been convicted and fined A$12,000 ($7,795) after pleading guilty of engaging in credit activity without a licence.
The company offered high-interest credit contracts to consumers in one of the most disadvantaged areas in Australia, and was found to have issued 9,641 pawn tickets – credit contracts – between July 24, 2015, and May 29, 2020.
In one example, one customer took a A$700 ($457) loan but ended up paying a total of A$2,204.60 ($1,439).
“Cash Lenders charged extremely high levels of fees and interest and used debt collectors while pretending the loans were backed by pawned items.”
Sarah Court, Deputy Chair, ASIC
The former company director Colin Hulbert was in 2017 ordered to pay a pecuniary penalty of A$220,000 ($143,578) for breaching consumer credit laws, and he was permanently banned in 2018 from engaging in credit activities.
Both the company and Hulbert were, in April 2023, charged with engaging in credit activity without a license, and Hulbert for also contravening the earlier banning order. The prosecution against Hubert stopped in early 2025 following his death in late 2024.
Bradley Laurence Willot Taylor’s registration cancelled – June 26, 2025
Bradley Laurence Willot Taylor’s registration as a company auditor has been cancelled by the Companies Auditors Disciplinary Board, after a failure to properly carry out an FY18 audit of iSignthis Ltd.
Court updates
Reginald Lance Williams’ application dismissed – June 23, 2025
The Federal Court has dismissed Reginald Lance Williams’ appeal to overturn the decision by the Companies Auditors Disciplinary Board to cancel his registration as a company auditor.
His registration was cancelled after failing to carry out or perform his auditor duties in connection of an audit of the financial report of LM Managed Performance Fund for the FY ending June 30, 2012
Williams was also ordered to pay ASIC’s costs of the proceeding.
ASIC news week 26
Expert panel for ASX Inquiry
The members for the panel for the Inquiry into Australian Securities Exchange (ASX) group have named, and include Rob Whitfield as Chair, and Christine Holman and Guy Debelle as panel members.
As reported earlier, the panel will focus on governance, capability and risk management frameworks and practices across the ASX group, and will make recommendations to address any identified shortcomings or deficiencies.
Speech
On June 23, ASIC Commissioner Alan Kirkland made a keynote speech addressing regulatory priorities in financial advice at the Professional Planner Licensee Summit in the Blue Mountains. He spoke about the “great responsibility” which ASIC has ensuring licensees follow its responsibilities, as well as licensees having to ensure they work in the best interest of clients.
In his speech, he pointed out three “simple principles that sit at the heart of the consumer protection framework for financial advice,” and listed:
- the need for the adviser to be appropriately qualified;
- the importance of providing advice that’s in the best interest of clients; and
- the need to have proper processes and resources for managing risks.
“Licensees have a role in preventing misconduct,” he concluded.
As promoted earlier by the Commission, all relevant providers must meet the qualifications standard on January 1, 2026, as the regulator will review and determine who can remain authorized to provide personal advice. Kirkland highlighted this fact and urged all to make sure information provided is correct and that qualifications are met.
“It is crucial for ASIC to be provided with accurate information in the lead up to the 1 January deadline, and it’s concerning that we have identified a number of errors and inconsistencies in the data that is on the register,” Kirkland said.
Warning of share sale fraud
A new version of Information Sheet 237 Protecting against share sale fraud has been released, following a spike of reports of stolen shares due to identity theft, and an industry review. With the sheet, ASIC calls on market intermediaries to “step up” and toughen share sale fraud prevention, detection and response practices to protect customers from potential harm.
“In the last four years, ASIC analysis has identified a seven-fold increase in the number of share sale fraud reports made by market intermediaries,” said ASIC Commissioner Simone Constant.
“Investors should review their share portfolios regularly, be alert to suspicious transaction activity, turn on multi-factor authentication, and use passphrases, not passwords for your logins.”
Further relief for licensees under the reportable situations regime
Following a proposal and consultation, ASIC has now added additional targeted relief under the reportable situations regime for Australian financial services and credit. The relief reduces some of the reporting burden on industry such as:
- Exemption from reporting certain breaches of the misleading and deceptive conduct provisions, including extending the total financial loss or damage to consumers from A$500 ($328) to A$1,000 ($656);
- extending time for investigation from 30 days to 60 days;
- increasing impacted consumers from five to 10; and
- a clarification that “a report is taken to be lodged with ASIC, if a licensee has submitted a breach report to the Australian Prudential Regulation Authority (APRA) that contains all the information APRA has requested.”
Consultation on employee redundancy funds
ASIC is seeking feedback on Consultation Paper 384 Employee redundancy funds – on which requirements that should apply to employee redundancy funds under the Corporations Act 2001 once the transitional relief expires on April 1, 2026.
The paper includes changes to the definition of ‘employee redundancy funds’, and three options for the regulation going forward.
Feedback can be submitted until July 22, and a final approach to the regulation can be expected in late 2025.
Uptake in small business restructurings
A new report by ASIC suggests that there has been a significant uptake in small business restructurings (SBRs) over the last few years, and that the SBR regime has an important role in assisting struggling businesses to survive.
Report 810, Report 810 Review of small business restructuring process: 2022–24, showed that 3,388 SBR appointments were started between July 1, 2022, and December 31, 2024, and the numbers have increased every year.
The report showcased:
- 2022-23: 448 appointments;
- 2023-24: 1,425 appointments; and
- 2024-25: Expecting the appointments to be around 3,000.
About half of all SBR appointments came from the construction (27%), and accommodation and food services (23%) industries.
In comparison, ‘only’ 82 SBR appointments were made between January 1, 2021, and June 30, 2022.
Of the 3,388 SBR appointments, 2,820 transitioned to small business restructuring plans, while most of the remaining were terminated because creditors rejected the proposed plan.
