Australian watchdog slaps 5-year ban on former Linchpin director
ASIC has banned a former director of Linchpin Capital Group and Endeavour Securities from providing any financial services for five years.
Paul Nielsen was hit with the ban for his role in the operation of the managed investment schemes by Linchpin and Endeavour. ASIC found Nielsen's conduct in approving the investment of funds of the Investport Income Opportunity Fund in related entities constituted multiple contraventions of the Corporations Act.
Linchpin, former parent company to Beacon Financial Link Group, had been found to operate without an Australian Financial Services Licence and engage in conduct that was likely to mislead or deceive as well as operate an unlawful managed investment scheme.
The court ordered the winding up of Endeavour, Linchpin and the two Investport Income Opportunity Funds, with Deloitte being appointed as liquidator of the entities.
ASIC found Nielsen did not understand the importance of the duties of a director to protect members of registered schemes and, as a result, his conduct put significant amounts of other people's money at risk.
In particular, Nielsen was found to have failed to act in the best interests of the members of the fund as well as using his position as an officer of the companies to gain an advantage for other persons and cause detriment to fund members.
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