ASIC alleges that between December 2014 and September 2018 SGSAPL failed to comply with client money obligations, in contravention of criminal offence provisions under sections 993B(1) and 993C(1) of the Corporations Act 2001 (the Act).
Client money provisions protect the interests of clients of Australian financial services (AFS) licensees by separating client money from money belonging to licensees. Breaching client money provisions is serious misconduct and risks undermining investor confidence.
The maximum penalty for each of the charges is 250 penalty units, approximately $45,000.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
The matter has been adjourned for a Case Management Hearing on 12 May 2020.