ASIC Enforcement Wrap: January 2026

4 February 2026

Key January Takeaways:

• ASIC’s newly established specialised insider trading team receives its first enforcement outcome against Rodney Forrest
• Heightened oversight of Self-Managed Super Funds, with ASIC taking action against 28 SMSF auditors
• ASIC handed out significant pecuniary penalties in the crypto and digital asset space, targeting BPS Financial and its Qoin Wallet scheme 

Spotlight – BPS Financial penalised $14 million for unlawful operation and misleading representations of its Qoin Wallet

The Federal Court has ordered BPS Financial Pty Ltd to pay a pecuniary penalty of $14 million for the unlawful promotion and operation of its Qoin Wallet from January 2020 until mid-2023.

The Qoin Wallet was promoted as a non-cash payment facility linked to a digital crypto token called Qoin. The Court previously found that for the entire duration of BPS Financials’ operation and promotion of the Qoin Wallet, the financial services business did not hold an Australian Financial Services License (AFSL).

The Court also found that BPS Financial published false and misleading representations about the ability of Qoin Tokens to be exchanged to Fiat currency and other crypto assets, and the official approval and registration status of the Qoin Wallet. 

Over the relevant period, BPS Financial issued more than 96,000 Qoin Wallets and derived substantial revenue totalling over $42 million from the sale of Qoin Tokens. 

The Court imposed a $2 million pecuniary penalty for BPS Financial’s unlicensed conduct in contravention of s911A of the Corporations Act. This figure is intended to be a deterrent against any further contravention, but also reflects the Court’s findings regarding BPS Financial’s attempts to comply with the law. Justice Downes cited BPS Financial’s consultation with ASIC prior to launching the product, the company’s lack of intention to contravene the law, and its acquiescence to further relief sought by ASIC as justification for the lesser penalty imposed on BPS Financial. 

A further pecuniary penalty of $12 million for BPS Financial’s misleading conduct was ordered by the Court. Justice Downes stated that the penalty reflected the objective recklessness of the conduct, involvement of senior management, the serious and misleading nature of the representations, the characteristics of the target audience, and the inadequate compliance systems. 

The Court also granted injunctive relief sought by ASIC to restrain BPS Financial from carrying on a financial services business without a licence for a period of 10 years. BPS Financial is also required to publish an adverse publicity notice on the Qoin Wallet application.

The large penalties imposed by the Court indicate the seriousness of BPS Financial’s misconduct. The digital asset industry continues to be scrutinised by ASIC and the judiciary to ensure providers hold appropriate licences and provide accurate information in relation to their products. 

January in Summary – Enforcement Actions and Outcomes

Civil Action

Civil Penalties

The Federal Court ordered $7.125 million in civil penalties against one company:

• Australian Unity Funds Management Limited (Australian Unity) has been ordered to pay a $7.125 million pecuniary penalty for failing to confirm the suitability of one of its products for investors. As the responsible entity of the Australian Unity Select Income Fund (Fund), Australian Unity breached its design and distribution obligations by failing to ensure its products were only distributed to investors that were included in the Fund’s Target Market Determinations (TMDs). Australian Unity issued interests in the Fund to 89 investors without requiring them to submit any evidence of membership of the Target Market and failed to review a further 239 investors’ TMD questionaries. The Court has ordered that Australian Unity send an adverse publicity notice to all impacted investors.

Criminal Action

Guilty Plea

One individual pleaded guilty to criminal charges:

• Brendan Gunn, a former finance director of Mormarkets Pty Ltd, has pleaded guilty to dealing with more than $180,000 when it was reasonable to suspect those funds were the proceeds of crime. Mormarkets accepted deposits from Australians for cryptocurrency and other investments. On the closure of two Mormarkets bank accounts due to suspicious activity or fraud, Mr Gunn received two bank cheques totalling $181,000 from the proceeds of investment amounts. Mr Gunn admitted that he dealt with the bank cheques by sending them to an associate. He now faces a maximum penalty of one year imprisonment, a fine of $12,600, or both.

Sentencing

Two individuals were sentenced following guilty pleas:

• Anthony Paul Torre was sentenced by the District Court of Western Australia to six years imprisonment with a non-parole period of four years, backdated to commence on 29 January 2025. Mr Torre pleaded guilty on 28 January 2025 to three counts of stealing and two counts of fraud resulting in the misappropriation of $1,030,000 of clients’ superannuation funds. Two of the victims included a couple over the age of 60 who were defrauded $500,000. Judge Prior remarked during sentencing that Mr Torre committed a gross breach of trust against victims who were vulnerable and trusted Mr Torre with their life savings.
• Rodney Forrest was sentenced by the Federal Court in Sydney to six years imprisonment with a non-parole period of three years for insider trading. In August 2024, Mr Forrest made $309,571.84 in profit when he secretly accessed the computer of the Chairman of Regal Partners, photographed confidential takeover documents, and traded in Platinum Asset Management Limited shares. This is the first enforcement outcome for ASIC’s new specialist insider trading team, who detected Mr Forrest’s suspicious trading activity in September 2024.

Administrative Action

Director Disqualifications

ASIC disqualified two individuals from managing corporations:

• Jimmy Yang and Freda Feng have been disqualified from managing corporations for the maximum period of five years until 17 December 2030. Mr Yang and Mrs Feng were the directors of three companies in the agriculture sector for roughly 20 years. Mr Yang was also a director of another company offering business and personal services. ASIC found that both Mr Yang and Mrs Feng failed to act properly and meet their obligations as company officers, including when Mr Yang improperly used one company’s funds to offer incentives to a former New South Wales Member of Parliament. The four companies owe a combined total of $56,830,527.44 to unsecured creditors, mainly small businesses in the agricultural sector.

Licence Suspension

One company had their Australian Credit Licence (ACL) suspended:

• Transitional Funding Pty Ltd had their ACL suspended by ASIC for six months effective 19 December 2025 until 17 June 2026. Transitional Funding failed to comply with the Key Person conditions on their licence which stipulates that an Australian credit licensee must notify ASIC within five business days of the Key Person ceasing to perform duties and lodge an application for a proposed new Key Person. Transitional Funding also failed to pay industry funding levies owed to ASIC.

Administrative Review Tribunal (ART)

The ART handed down two decisions:

• Richard Ernest Auricht has had the decision by the registered liquidator disciplinary committee to cancel his liquidator registration set aside by the ART. The ART instead decided that Mr Auricht’s registration should be suspended for five years, commencing on 23 June 2023. Mr Auricht’s registration was originally cancelled because he drew remuneration without court or creditor approval, failed to lodge documents with ASIC, and did not have the knowledge or ability to act as a liquidator. The ART held that the five-year suspension was a more appropriate outcome than a cancellation as Mr Auricht’s conduct was not dishonest, and he had not been subject to previous disciplinary action.
• Milutin Petrovic, a former United Global Capital (in liquidation) financial advisor, has had a six year ban from ASIC varied to three years by the ART. Mr Petrovic will be banned from providing financial services, carrying on a financial services business, and controlling an entity that carries on a financial services business for three years. The ART held that the six year ban was excessive and that a three year ban was more appropriate as there was no dishonesty, no loss to clients, and no personal gain to Mr Petrovic. 

Other Enforcement Actions: 

• In the first half of the 2025-26 financial year, 28 self-managed superannuation fund (SMSF) auditors had their registrations cancelled, conditions imposed on them, or were disqualified by ASIC. ASIC acted after finding various breaches of professional obligations and standards, including failures to comply with auditing standards, failures to provide ASIC with annual statements, failures to advise ASIC of changes to contact details, and failures meet the practical experience requirements. ASIC disqualified 4 SMSF auditors, imposed additional conditions on 2 SMSF auditors, and cancelled the registration of 22 SMSF auditors.

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If any of the above is relevant to you or you want to know more, please feel free to get in touch.

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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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