Australian Securities and Investments Commission v CFS Private Wealth Pty Ltd (No 2) [2019] FCA 24

Australian Securities and Investments Commission v CFS Private Wealth Pty Ltd (No 2) [2019] FCA 24

It is just and equitable to wind up CFS Private Wealth Pty Ltd and Combined Financial Solutions Pty Ltd, due to ongoing breaches of the Corporations Act, misuse of investor funds, inadequate record keeping, failure to lodge financial statements and insufficient assets; ASIC is not an aggrieved person for purposes of reinstation of BDM Asia Pacific under s 601AH(2); Mr Miller should be restrained from providing financial services for 25 years and disqualified from managing corporations for 3 years due to serious misconduct, breaches of statutory duties and lack of remorse.

Parties
Applicant: Australian Securities and Investments Commission; First Respondent: CFS Private Wealth Pty Ltd; Second Respondent: BDM Asia Pacific Pty Ltd (Deregistered); Third Respondent: Combined Financial Solutions Pty Ltd; Fourth Respondent: Graeme Walter Miller
Jurisdiction
Australia
Judgment Date
18 January 2019
Procedural Posture
Application / Final Judgment
Outcome
Winding up orders granted for CFS Private Wealth Pty Ltd and Combined Financial Solutions Pty Ltd; appointment of liquidators; restraint and disqualification orders made against fourth respondent; application for reinstatement and winding up of BDM Asia Pacific Pty Ltd dismissed.
Legal Topics
Winding Up on Just and Equitable Grounds, Permanent Restraint From Providing Financial Services, Disqualification From Managing Corporations
Corporations Law Winding Up on Just and Equitable Grounds Permanent Restraint From Providing Financial Services Disqualification From Managing Corporations

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Parties

Australian Securities and Investments Commission

Applicant

CFS Private Wealth Pty Ltd

First Respondent

BDM Asia Pacific Pty Ltd (Deregistered)

Second Respondent

Combined Financial Solutions Pty Ltd

Third Respondent

Graeme Walter Miller

Fourth Respondent

Procedural Posture

Application / Final Judgment

Legal Issues

  1. 1 Whether it is just and equitable to wind up CFS Private Wealth Pty Ltd and Combined Financial Solutions Pty Ltd under section 461(1)(k) of the Corporations Act 2001 (Cth)
  2. 2 Whether ASIC is an aggrieved person for purposes of reinstatement of BDM Asia Pacific Pty Ltd under section 601AH(2) of the Act
  3. 3 Whether Mr Miller should be permanently restrained from providing financial services under section 1324(1)(e) of the Act

Ratio Decidendi

It is just and equitable to wind up CFS Private Wealth Pty Ltd and Combined Financial Solutions Pty Ltd, due to ongoing breaches of the Corporations Act, misuse of investor funds, inadequate record keeping, failure to lodge financial statements and insufficient assets; ASIC is not an aggrieved person for purposes of reinstation of BDM Asia Pacific under s 601AH(2); Mr Miller should be restrained from providing financial services for 25 years and disqualified from managing corporations for 3 years due to serious misconduct, breaches of statutory duties and lack of remorse.

Court Disposition

Winding up orders granted for CFS Private Wealth Pty Ltd and Combined Financial Solutions Pty Ltd; appointment of liquidators; restraint and disqualification orders made against fourth respondent; application for reinstatement and winding up of BDM Asia Pacific Pty Ltd dismissed.

Orders

  • The First Respondent be wound up under section 461(1)(k) of the Corporations Act 2001 (Cth).
  • William James Harris and Anthony Norman Connelly be appointed as joint and several liquidators of the First Respondent.