Australian Securities and Investments Commission v Gallop International Group Pty Ltd, in the matter of Gallop International Group Pty Ltd [2019] FCA 1514

Australian Securities and Investments Commission v Gallop International Group Pty Ltd, in the matter of Gallop International Group Pty Ltd [2019] FCA 1514

Gallop International Group Pty Ltd contravened the Corporations Act 2001 (Cth) and ASIC Act 2001 (Cth) between 24 May 2017 and 9 November 2017 by carrying on an unlicensed financial services business, making deceptive representations about licensing and security of investor funds, and failing to inform the public of its licence cancellation. Ming-Chien Wang, as controlling mind and executive director, was knowingly concerned and instrumental in the contraventions. Orders were made for penalty, disqualification, permanent restraint, and winding up of other involved entities.

Jurisdiction
Australia
Judgment Date
16 September 2019
Procedural Posture
Civil / Final Judgment
Outcome
Application allowed in part; civil penalties, wind-up, and declaratory orders granted.
Legal Topics
['australian Financial Services Licence (afsl)' 'false or Misleading Representations' 'misleading and Deceptive Conduct' 'accessory Liability' 'disqualification From Managing Corporations' 'winding Up Orders' 'pecuniary Penalties']
['corporations Law' 'financial Services Regulation' 'consumer Protection'] ['australian Financial Services Licence (afsl)' 'false or Misleading Representations' 'misleading and Deceptive Conduct' 'accessory Liability' 'disqualification From Managing Corporations' 'winding Up Orders' 'pecuniary Penalties']

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Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 ['Whether Gallop International Group Pty Ltd carried on a financial services business without holding an AFSL after cancellation' 'Whether false or misleading representations were made about licensing and investor funds security' 'Whether conduct was misleading or deceptive under Corporations Act and ASIC Act' 'Whether Ming-Chien Wang was knowingly concerned in contraventions' 'Appropriate penalty and restraints for involvement' 'Whether winding up of Gallop Asset Management Pty Ltd and Stumac Pty Ltd is just and equitable']

Ratio Decidendi

Gallop International Group Pty Ltd contravened the Corporations Act 2001 (Cth) and ASIC Act 2001 (Cth) between 24 May 2017 and 9 November 2017 by carrying on an unlicensed financial services business, making deceptive representations about licensing and security of investor funds, and failing to inform the public of its licence cancellation. Ming-Chien Wang, as controlling mind and executive director, was knowingly concerned and instrumental in the contraventions. Orders were made for penalty, disqualification, permanent restraint, and winding up of other involved entities.

Court Disposition

Application allowed in part; civil penalties, wind-up, and declaratory orders granted.

Orders

  • ['Declaration that Gallop International Group Pty Ltd contravened Corporations Act 2001 (Cth) s 911A by operating a financial services business without an AFSL between 24 May 2017 and 9 November 2017.' 'Declaration that Gallop International Group Pty Ltd contravened ASIC Act 2001 (Cth) s 12DB(1)(e) by causing...