ASIC has banned the two joint chief executives of Australian Mutual Holdings from providing financial services for six years following an investigation.
Jeffrey Worboys and Matthew Barnett were until February last year joint chief executive officers of Australian Mutual Holdings Limited, which was a AFSL holder and responsible entity operating a number of managed investment schemes.
The regulator uncovered that when establishing Courtenay House Capital Investment Fund, Worboys and Barnett failed to ensure that the persons responsible for trading funds had the requisite qualifications and experience to manage a foreign exchange derivatives fund.
ASIC found that the two executives failed to act in the best interest of the members of the fund, including a failure to ensure that the persons responsible for trading funds had the requisite qualifications and experience to manage a foreign exchange and derivates fund.
Worboys and Barnett were found to not be relied upon to discharge the duties and obligations imposed on a provider of financial services and were likely to contravene a financial services law.
The duo have been banned for six years and have the right to appeal for a review of the decision.
The corporate watchdog said they had not maintained the high standards expected of a financial services adviser and demonstrated a lack of integrity, judgement and professionalism.
ASIC also said they could not be relied upon to discharge the duties and obligations imposed by a provider of financial services were not competent to provide a financial service, and were likely to contravene financial services law.
The two men have a right to appeal ASIC's decision to the Administrative Appeals Tribunal.