ASIC Enforcement Wrap: April 2026

ASIC’s active enforcement posture continued through April 2026, with significant actions across insider trading, responsible lending, continuous disclosure, financial advice misconduct and director disqualification. ASIC’s activity also highlighted the regulator’s continued focus on Shield- and First Guardian-related advice issues, financial reporting compliance and governance failures within the financial services sector.

Key April Takeaways:

• ASIC continued its focus on insider trading enforcement, securing guilty pleas in the Beacon Minerals and Big Un matters, reinforcing the Regulator’s willingness to pursue market misconduct in criminal courts. 
• Alleged financial advice failures linked to Shield and First Guardian remained a major enforcement priority, with multiple adviser bans, licence suspensions and findings relating to conflicted remuneration, inappropriate superannuation advice and misleading conduct.
• ASIC maintained pressure on governance and disclosure compliance, with actions involving continuous disclosure, responsible lending, financial reporting failures and director disqualifications across listed entities and financial services firms.

Spotlight – Former Beacon Minerals project manager Alexander McCulloch pleads guilty to insider trading

ASIC’s prosecution of former Beacon Minerals project manager Alexander McCulloch highlights the enforcement risks for operational employees who obtain access to confidential market-sensitive information through technical or project-management roles.

On 17 April 2026, Mr McCulloch pleaded guilty to one rolled-up count of insider trading after allegedly procuring two associates to acquire approximately 11 million Beacon Minerals shares in January 2017 while he possessed inside information concerning the company’s Jaurdi Gold Project drilling program.  At the time, Mr McCulloch was responsible for managing the drilling program and had access to confidential exploration results before they were announced to the ASX.  The information related to stage one drilling results that had not yet been disclosed to the market. Beacon Minerals’ share price reportedly increased by approximately 33% following the announcement of those results on 31 January 2017.

The prosecution highlights ASIC’s commitment to pursuing criminal prosecutions of alleged market misconduct, often many years after the fact, including   involving resource exploration announcements and operational personnel with access to commercially sensitive geological or production data. 

The guilty plea shows that risks associated with access to inside information extend beyond the board and c-suite executives to employees, contractors and consultants who may obtain confidential information through day-to-day operational responsibilities.

The case forms part of a broader Beacon Minerals insider trading investigation commenced by ASIC in 2021, which also resulted in guilty pleas by former geological consultant Darryl Mapleson. 

ASIC has repeatedly identified insider trading enforcement as an ongoing strategic priority.  As atApril 2026 ASIC had secured criminal convictions against 46 individuals since 2009 following insider trading investigations.

April in Summary – Enforcement Actions and Outcomes

Civil Action

Civil Proceedings

ASIC commenced one civil proceeding in the Federal Court:

• In a novel action reflective of ASIC’s increasingly interventionist enforcement approach, ASIC has applied for the appointment a receiver to investigate Sequoia Wealth Group Pty Ltd’s proposed $50,000 sale of Interprac Financial Planning Pty Ltd (Interprac) to Conquest Investment Partners Pty Ltd. ASIC is concerned that the sale could affect creditors ability to recover against indemnities provided to Interprac from Sequoia Wealth or its related parties.  In particular ASIC is concerned above liabilities arising from AFCA complaints against Interprac linked to Shield and First Guardian advice failures.

Civil Penalties

The Federal Court ordered $12.55 in civil penalties against 4 companies:

• The Federal Court ordered Money3 loans Pty Ltd (Money3) to pay $1.55 million for breaching their responsible lending obligations when providing car finance. The court found Money3 failed to make reasonable inquiries about borrowers’ requirement and objectives for five loans between may 2019 and February 2021. 

• The Federal Court ordered Cigno Australia, BSF Solutions and their directors to pay $7 million combined penalties for unlicensed credit activity and charging prohibited fees. ASIC said the “No Upfront Charge Loan Model” sidestepped consumer credit protections and generated more than $90m in fees (ASIC has now appealed this penalty in the Full Federal Court).  
• The Federal Court ordered Electro Optic Systems Holdings Limited (EOS) to pay $4 million for continuous disclosure breaches. EOS became aware in July 2022 that its revenue guidance was materially overstated but did not correct the market until October 2022. ASIC said the case reinforced timely disclosure obligations. 

Civil Judgments

The Federal Court handed down the following judgment:

• The Federal Court dismissed ASIC’s continuous disclosure and misleading conduct case against the intelligence software provider Nuix Limited. The Court found Nuix did not breach obligations when reaffirming financial forecasts after its 2020 Initial Public Offering and dismissed related directors’ duties claims. 

Convictions

Three companies were convicted and fined:

• Three public companies have been convicted and fined at the Downing Centre Local Court for failing to meet their obligations as public companies to provide financial reports to ASIC. Urban Ecological Systems Limited was fined $240,000, Invitrocue Limited was fined $530,000, and Boyuan Holdings Limited was fined $400,000 for failing to lodge their full-year financial reports. These reporting obligations are in place to help shareholders make informed decisions.

Guilty Pleas

Two individuals pleaded guilty to criminal charges:

• Former Big Un CEO Richard Evans pleaded guilty to communicating inside information to a shareholder in January 2017. The information concerned customer onboarding and a proposed $20 million funding arrangement involving Finstro. The plea forms part of ASIC’s broader investigation into Big Un, which ASIC described as one of the most high-profile ASX technology collapses of 2018.
• Former Beacon Minerals project manager Alexander McCulloch pleaded guilty to one rolled-up count of insider trading. See the Spotlight above.

Administrative Action

Bans

Eight individuals were banned by ASIC from providing financial services:

• ASIC banned David Lofthouse from providing financial services for three years effective 30 March 2026. ASIC alleged that while authorised by MWL Financial Services Pty Ltd, Mr Lofthouse provided inappropriate advice to six clients which was not in their best interests by recommending that they invest at least 75% of their superannuation in the High Growth or Growth classes of the Shield Master Fund.
• ASIC permanently banned former adviser and credit representative Aristotle Papapavlou. ASIC found dishonest, misleading and unprofessional conduct, including involvement in Venture Egg’s alleged high-volume advice process that led clients to roll super into Shield and First Guardian, and also conduct preferring his own interests over clients’ interests in respect of his remuneration. 

• ASIC banned Shane Monte Silva for five years over Shield and First Guardian related advice. ASIC found Mr Monte Silva failed to act in clients’ best interests when recommending super switches into high-risk schemes, relying on fact finds by unlicensed referrers and statements of advice containing misleading material. 
• ASIC banned Rhys Reilly the sole director of Conexus Group Pty Ltd (Conexus) for 10 years. ASIC also suspended Conexus Group’s AFS licence until 31 July 2026. ASIC found that Mr Reilly engaged in serious misconduct, including accepting conflicted remuneration and misleading clients, in relation to his advice regarding First Guardian and Shield.   
• ASIC banned former MWL adviser John Morgan for five years. ASIC found he gave inappropriate advice regarding Shield Master Fund and made misleading statements suggesting Shield had generated returns and outperformed alternatives, despite Shield only existing since May 2021. 
• ASIC permanently banned Yanhua “Scott” Chen from financial services. ASIC found he received $490,000 from a client for investment but instead used the funds for his own trading, lost the money, and misled the client. 
• ASIC disqualified Lambros Hilellis for five years over four failed companies owing around $12.4m, including $3.7m to the ATO. ASIC cited false tax returns, unexplained payments, insolvent trading, poor records, failures to lodge and failure to cooperate with liquidators. 
• Former ISG Financial Services director and responsible manager Benjamin Godfrey was banned by ASIC from providing financial services for 10 years, effective from 31 March 2026. ASIC found that Mr Godfrey failed to comply with financial services laws, was involved in contraventions by other persons, and was not a fit and proper person to provide financial services.

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Four companies had their Australian financial services licence (AFSL) or Australian credit licence (ACL) suspended or cancelled:

• ASIC cancelled Beacon Wealth Pty Ltd’s AFSL because the firm had ceased carrying on a financial services business and had not taken steps to recommence after the license was initially cancelled in 2025. 
• ASIC cancelled The Silverfern Group Pty Ltd’s AFSL because it had ceased carrying on a financial services business. The cancellation followed ASIC enquiries into statutory reporting, audit and fee non-compliance, though ASIC noted those issues were resolved before cancellation. 
• ASIC suspended Oscar Oliver Capital’s AFSL for four months, finding it had ceased carrying on a financial services business since July 2023. The suspension runs to 31 July 2026. 
• ASIC cancelled ABL Funds Management’s (ABL) AFSL after it failed to meet audit and financial-reporting lodgement obligations for the 2023, 2024 and 2025 financial years. ABL may seek Administrative Review Tribunal review. 

Director Disqualifications

ASIC disqualified two individuals from managing corporations:

• Ashod Ohan Balanian was disqualified from managing corporations for the maximum period of five years for his involvement in three failed companies. Between May 2017 and May 2024, Mr Balanian was the director of three companies that operated a cryptocurrency fund. ASIC found that Mr Balanian engaged in serious misconduct and failed to meet his obligations as a director including failure to assist the Liquidators of the companies and failure to exercise due care and diligence to ensure the companies met their obligations. ASIC found that Mr Balanian allowed the companies to operate without complying with their obligations which put investors at risk. 
• ASIC disqualified Gold Coast director David Parker for five years over four failed companies owing over $3m, including more than $1m to the ATO. ASIC cited tax lodgement failures, inadequate books, poor control of bank accounts and failure to submit a ROCAP. 

Other Enforcement Actions:

• ASIC joined 16 overseas regulators in a global crackdown on unlawful finfluencers. ASIC issued warning notices to four suspected finfluencers and reviewed AFS licensees supervising 15 finfluencers. ASIC highlighted Gen Z reliance on social media for financial information and warned licensees against “set-and-forget” supervision. 
• Following an ASIC review, Pure Foods Tasmania reduced recognised deferred tax assets by $4.5m. ASIC said unused tax losses can only be recognised where future taxable profit is probable, and reminded preparers that judgement becomes more uncertain for later forecast periods. 
• ASIC accepted Douglas Trood’s application to cancel his company auditor registration after raising independence concerns. ASIC pointed to a 34-year audit-client association and past director, secretary and shareholder roles, which created self-interest and familiarity threats. 
• ASIC discontinued winding-up proceedings against Liberty Bell Bay. ASIC had sought winding up for failures to lodge annual financial reports, but administrators were later appointed, deferring the company’s financial-reporting obligations while administration proceeds 
• Following ASIC review, Viva Energy changed its impairment-testing approach for convenience retail sites, resulting in an additional $25m impairment. ASIC said AASB 136 generally requires impairment testing at individual asset level where possible, rather than grouping assets into a CGU. 

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The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have. 

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