Queensland-based Robert Henley, a former director of Apple Investment Company, has been banned from providing financial services for five years.
The Australian Securities and Investments Commission (ASIC) said it had reason to believe Mr Henley will not comply with financial services laws.
Apple was an authorised representative of Mark Power Financial from 6 October 2009 until 4 April 2011.
Mr Henley was the sole director of Apple and an authorised representative of Mark Power Financial from 11 May 2010 to 4 April 2011.
ASIC found that Mr Henley failed to ensure Apple did not make misleading statements in its website and brochure, failed to ensure it provided a product disclosure statement to all clients who required one, and failed to ensure it did not engage in referral selling in relation to the FX Calibre product.
Mr Henley also failed to take an active role in ensuring the business complied with its obligations as a provider of financial services, ASIC said, finding that he did not understand the duties and obligations of a provider of financial services.
ASIC concluded that Mr Henley cannot be relied upon to ensure that financial services laws are complied with.
Mr Henley returned to his native Canada on 11 July 2011. Prior to departing, he advised ASIC that he intended to return to Australia and remain the sole director of Apple.
However, ASIC commissioner Peter Kell said that as the director of an authorised representative of an Australian financial services licensee and authorised representative in his own right, Mr Henley had an important responsibility to ensure the business complied with its legal obligations.
“As part of its broader efforts to develop investor confidence and improve industry standards, ASIC will take action to remove those who fail to demonstrate the appropriate level of oversight and understanding of financial services laws from the industry,” Mr Kell said.
Mr Henley has the right to appeal the decision to the Administrative Appeals Tribunal.
His banning follows the banning of Apple itself from providing financial services for five years, effective 24 October 2012, after it was found the company failed to comply with financial services laws.
ASIC cancelled the Australian financial services licence of Mark Power Financial Pty Ltd in November 2011.
Apple had offered clients a foreign exchange trading platform, ‘FX Calibre’, and foreign exchange education packages. Apple marketed its products and services through telemarketing, a website and a brochure.
