Australian Securities and Investments Commission v MyWealth Manager Financial Services Pty Ltd (No 2) [2019] FCA 2107

Australian Securities and Investments Commission v MyWealth Manager Financial Services Pty Ltd (No 2) [2019] FCA 2107

Orders appointing receivers, asset preservation restraints, delivery up of books and records, and travel bans were warranted against the first, third, fifth, sixth, and seventh defendants because ASIC's evidence demonstrated investigations into acts potentially constituting contraventions of the Corporations Act and clear risks to investor assets; conversely, no such investigation or evidentiary foundation existed for orders against the second and fourth defendants, so the application against them was dismissed.

Jurisdiction
Australia
Judgment Date
13 December 2019
Procedural Posture
Interlocutory Application / Orders on Application for Receivers and Restraints
Outcome
Application granted in part; interlocutory orders made as sought against first, third, fifth, sixth, and seventh defendants; application dismissed against second and fourth defendants.
Legal Topics
['appointment of Receivers' 'asset Preservation Orders' 'managed Investment Scheme' 'financial Services Regulation' 'travel Restraint' 'provision of Financial Services Without Licence']
['corporations Law' 'commercial Law'] ['appointment of Receivers' 'asset Preservation Orders' 'managed Investment Scheme' 'financial Services Regulation' 'travel Restraint' 'provision of Financial Services Without Licence']

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Procedural Posture

Interlocutory Application / Orders on Application for Receivers and Restraints

Legal Issues

  1. 1 ['Whether evidence establishes ASIC investigation relating to acts constituting possible contraventions by defendants' 'Appropriateness and proportionality of receivership and asset preservation orders' 'Whether preconditions to exercise of discretion under s 1323 Corporations Act are satisfied' 'Whether orders can be made against entities not originally investigated']

Ratio Decidendi

Orders appointing receivers, asset preservation restraints, delivery up of books and records, and travel bans were warranted against the first, third, fifth, sixth, and seventh defendants because ASIC's evidence demonstrated investigations into acts potentially constituting contraventions of the Corporations Act and clear risks to investor assets; conversely, no such investigation or evidentiary foundation existed for orders against the second and fourth defendants, so the application against them was dismissed.

Court Disposition

Application granted in part; interlocutory orders made as sought against first, third, fifth, sixth, and seventh defendants; application dismissed against second and fourth defendants.

Orders

  • ['Receivers and Managers appointed to property of first, third, fifth, sixth, and seventh defendants for specified purposes under s 1323 Corporations Act.' 'Receivers granted powers under s 420 Corporations Act and to apply for further directions.' 'First, third, fifth, sixth, and seventh defendants restrained from...