Business News

ASIC successful in ActiveSuper proceedings

The Australian Securities and Investments Commission (ASIC) has been successful in most of its Federal Court submissions seeking banning orders against the individuals involved in the ActiveSuper and Royale Capital financial services businesses.

The Federal Court delivered its judgment pertaining to these orders on Friday, resulting in Craig Gore and Jeffrey George being banned permanently from providing financial services; Marina Gore and Justin Gibson being banned from providing financial services for 7.5 years; and a 10-year ban from providing financial services for Mark Adamson and Jason Burrows.

Burrows and Gibson were also disqualified from managing companies for 10 years and 7.5 years respectively.

The judgment differed from ASIC’s submissions in relation to Marina Gore, with the regulator originally seeking a permanent ban from providing financial services for her as well.

The investigation into the activities of ActiveSuper and Royale Capital began in November 2011 and involved the misuse of over $4 million raised from SMSF investors. ASIC’s examination of the businesses and the individuals involved focused on the provision of advice in regard to the establishment of SMSFs to facilitate investments in properties and the stocks of overseas companies.

In handing down the court’s decision, Justice Richard White described Craig Gore’s behaviour as dishonest.

“Mr Gore’s taking of monies for his own personal use which was subscribed for the purpose of investment in real estate cannot be characterised in any other way,” he said.

ASIC commissioner Greg Tanzer welcomed the decision and said it indicated the courts, the regulator and the community would not tolerate activities that were intended to destroy people’s lives.

“With more than 539,000 SMSFs, over a million members and assets totalling more than $550 billion, ASIC has ramped up its attention on a sector which is of growing importance to more Australian investors,” Tanzer said.

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