ASIC Enforcement Wrap: June 2026

ASIC Enforcement Wrap: June 2026

Key June Takeaways:

• ASIC secured a record $300.2 million in civil penalties against Union Standard International Group and its former authorised representatives EuropeFX and TradeFred, for systemic unconscionable conduct targeting inexperienced and vulnerable investors through high-risk CFD products.
• Director and executive accountability remained a central focus, with former Metigy CEO David Fairfull sentenced to nine years’ imprisonment, former Star Entertainment executives disqualified and fined, and multiple permanent bans and disqualifications imposed across the industry.
• ASIC continued to pursue consumer protection and market integrity outcomes through a $35 million penalty against HSBC for scam protection failures, fraud charges against a property developer misusing NDIS investor funds, and the High Court confirming ASIC’s position on crypto licensing obligations.

Spotlight – Federal Court orders record $300.2 million penalties over Union Standard CFD misconduct

The Federal Court has imposed record penalties totalling $300.2 million against Union Standard International Group and its former authorised representatives EuropeFX and TradeFred for systemic unconscionable conduct involving contracts for difference (CFDs). The Court found that between 2018 and 2020 the businesses targeted inexperienced and vulnerable investors, used aggressive sales tactics, made misleading representations, and pressured customers to deposit more funds into high-risk trading products.

Customers lost more than $83 million, while the firms profited from client losses in up to 99% of cases. The Court described the conduct as egregious and ordered EuropeFX to refund customer deposits and permanently cease providing financial services. ASIC said the decision sends a strong deterrent message that licensees remain accountable for misconduct carried out under their licences.

June in Summary – Enforcement Actions and Outcomes

Civil Action

Civil Penalties

The Federal Court ordered significant civil penalties in three matters:

• The Federal Court has imposed record penalties totalling $300.2 million against Union Standard International Group and its former authorised representatives EuropeFX and TradeFred for systemic unconscionable conduct involving contracts for difference (CFDs). The Court found that between 2018 and 2020 the businesses targeted inexperienced and vulnerable investors, used aggressive sales tactics, made misleading representations, and pressured customers to deposit more funds into high-risk trading products. Customers lost more than $83 million, while the firms profited from client losses in up to 99% of cases. The Court described the conduct as egregious and ordered EuropeFX to refund customer deposits and permanently cease providing financial services. ASIC said the decision sends a strong deterrent message that licensees remain accountable for misconduct carried out under their licences.
• The Federal Court has ordered HSBC Bank Australia to pay a $35 million penalty after the bank admitted to serious failures in protecting customers from scams. The Court found HSBC failed to implement key scam controls on its internal transfer systems, despite growing risks from impersonation scams, and took an average of 144 days to investigate customer reports of unauthorised transactions. The bank also failed to properly apply the ePayments Code and lacked adequate systems to help customers regain access to their accounts after scams occurred. ASIC described the failures as widespread and systemic. HSBC has already paid approximately $21.5 million in compensation and returned a further $6.5 million recovered from scam transactions.
• The Federal Court has ordered Mercer Super to pay penalties totalling $10.3 million for systemic failures to report investigations into significant member services issues to ASIC between October 2021 and September 2024, including a probe into insurance premiums that continued being charged after members had died. The Court found Mercer Super's systems for complying with the reportable situations regime were inadequate, that it failed to report seven investigations to ASIC at all, and that it reported another late while providing false or misleading information that understated the number of affected members, with ASIC Chair Sarah Court describing it as a sustained systemic issue rather than an isolated oversight, unacceptable for a fund entrusted with $80 billion in retirement savings for over a million members.

ASIC sues former Keystone Asset Management directors and compliance committee members over alleged Shield failures:

• ASIC has commenced Federal Court proceedings against Paul Chiodo, Ilya Frolov and Mark Yorston, former directors of Keystone Asset Management, for allegedly breaching their director and officer duties. ASIC also commenced proceedings against Jeremy Danon and Mr Frolov, former compliance committee members, for allegedly failing to meet their obligations in relation to the collapsed Shield Master Fund. ASIC alleges that of more than $530 million in retirement savings from around 5,800 investors that flowed into Shield, roughly $305 million was transferred to a related property development fund controlled by Keystone before moving on to entities linked to Mr Chiodo and Mr Frolov without basic safeguards such as proper security, valuations, oversight or conflict management. ASIC is seeking civil penalties, disqualification orders and costs, and noted its investigations into Shield are continuing.

Civil Judgments

The Federal Court handed down judgments in the following matters:

• The Federal Court has disqualified former Star Entertainment chief executive Mathias Bekier and former chief legal and risk officer Paula Martin from managing corporations for six and seven years respectively and ordered them to pay penalties totalling $1.1 million. The Court found both executives breached their duties by failing to properly manage and escalate risks relating to money laundering and criminal activity within Star’s casino operations. The judgment followed findings that serious governance failures occurred in relation to Star’s dealings with high-risk junket operators and anti-money laundering controls. ASIC said the penalties reflect the seriousness of the misconduct and reinforce the responsibility of senior executives to identify, manage and report significant organisational risks.
• The Federal Court has found that a south-west Sydney car dealership and its former director engaged in unlicensed credit activities and charged unlawful fees to customers. The Court found the business provided credit without holding the required licence and imposed fees that were not permitted under consumer credit laws. ASIC said the conduct undermined protections designed to ensure consumers receive fair treatment when obtaining finance and highlighted the importance of complying with licensing obligations.

The Supreme Court of NSW has held Rex accountable for continuous disclosure failure:

• The Supreme Court of New South Wales has found that Regional Express Holdings Limited (Rex) breached its continuous disclosure obligations by maintaining an overly optimistic February 2023 profit forecast when it no longer had reasonable grounds to expect a positive full-year result, only correcting the market in June 2023 with a forecast $35 million loss before entering voluntary administration in July 2024. The decision came six weeks after Rex's former executive chair, Lim Kim Hai, admitted to the alleged contraventions against him and accepted a pecuniary penalty and disqualification orders for breaching his director duties.  ASIC was however unsuccessful in its parallel case against three former non-executive directors — John Sharp, Siddharth Khotkar and Lincoln Pan — for allegedly contravening their directors' duties, as well as in its misleading conduct case against Rex itself, with the matter now returning to court for a relief hearing against Mr Lim.

Civil Appeals

The Full Federal Court dismissed one of ASIC’s appeals:

• The Full Federal Court has dismissed ASIC’s appeal against a finding that a “pre-existing condition” term used in certain HCF Life insurance products was not an unfair contract term. However, the Court left undisturbed earlier findings that the term was liable to mislead consumers. ASIC brought the appeal to clarify how unfair contract term protections apply to insurance contracts where other statutory protections may also operate. HCF Life previously replaced the disputed term and was ordered to pay a $750,000 penalty after the Federal Court found the wording was liable to mislead the public. ASIC said it is considering the Court’s decision.

High Court

• The High Court has dismissed an appeal by Earner, upholding earlier findings that the company’s cryptocurrency-related product was a financial product requiring an Australian financial services licence. The decision confirms ASIC’s position that businesses offering investment-like crypto products must comply with financial services laws. ASIC said the ruling provides important clarity for the digital asset sector and reinforces that existing regulatory obligations apply regardless of the technology used to deliver financial products.

Criminal Action

Charges

ASIC charged two individuals with criminal offences:

• In an Australian first, ASIC has criminally charged Giuseppe DeFrancesco of Harrington Park, NSW, marking the regulator's inaugural prosecution under the creditor-defeating disposition laws. DeFrancesco has been charged with three offences relating to his conduct as an employee of Camden restaurant Jasa Dining Pty Ltd, now in liquidation, between August 2023 and June 2025, including allegedly dishonestly redirecting $935,000 in proceeds from the sale of Jasa Dining to himself between August 2023 and April 2024 (carrying a 15-year maximum penalty), and further allegedly procuring the company to redirect an additional $96,793 in sale proceeds (carrying a 10-year maximum penalty). He was also allegedly involved in witness tampering. The matter has been adjourned to the Downing Centre Local Court on 11 August 2026.
• ASIC has charged Queensland property developer David McWilliams with 13 criminal offences, including 12 counts of fraud and one count of making a false or misleading statement, over the alleged misuse of more than $10 million raised from investors for specialist disability accommodation (SDA) projects. ASIC alleges that between 2021 and 2023, funds intended for NDIS-backed housing developments were diverted to unrelated purposes, including a luxury vehicle, cryptocurrency investments, a pub and a residential apartment. Of the six SDA projects linked to the fundraising, only one commenced construction and none were completed. ASIC also alleges investors were provided with misleading information regarding a proposed SDA development in Townsville. If convicted, McWilliams faces significant criminal penalties.

Guilty Pleas

Two individuals pleaded guilty to criminal charges:

• Palmer Leisure Coolum Pty Ltd has pleaded guilty to offences relating to breaches of Australia’s takeover laws. ASIC alleged the company failed to comply with disclosure and procedural requirements designed to protect shareholders during corporate control transactions. The matter forms part of ASIC’s ongoing enforcement efforts to ensure transparency and fairness in takeover activity and corporate acquisitions.
• Former Western Australian company director Trent Bowden has pleaded guilty to three charges of dishonestly using his position as director of Trent Bowden Trading Pty Ltd for personal gain. Mr Bowden appeared before the Perth Magistrates Court on 26 June 2026 and pleaded guilty to three offences contrary to section 184(2)(a) of the Corporations Act 2001, each carrying a maximum penalty of 15 years' imprisonment, after allegedly receiving more than $1.5 million from investors between March 2019 and November 2023 on the representation their funds would be invested primarily through foreign exchange trading, but instead using the money for personal expenses, payments to other investors and other non-trading purposes. The matter is next listed before the Perth District Court on 21 August 2026 for a sentence mention.

Sentencing

One individual was sentenced in criminal matters:

• The Federal Court has sentenced former Metigy CEO David Fairfull to nine years’ imprisonment after he pleaded guilty to making false and misleading statements to investors and dishonestly using his position as a director for personal gain. The Court found that between 2018 and 2021, Fairfull raised approximately $39 million from investors by falsely representing Metigy’s financial performance and later misused company funds for his personal benefit. He was sentenced to nine years’ imprisonment with a non-parole period of five years and four months. ASIC said the conduct undermined confidence in Australia’s financial markets and represented a serious breach of directors’ duties.

Discontinued Prosecution

• The Commonwealth Director of Public Prosecutions has discontinued insider trading charges against former Big Un CFO Andrew Corner following a hung jury trial. The charges related to allegations that Corner traded shares while in possession of non-public information concerning the company. ASIC acknowledged the prosecution decision and noted that the matter would not proceed to a retrial.

Administrative Action

Bans

Three individuals were banned by ASIC from providing financial services:

• ASIC has banned financial adviser Brett Anthony Newbound from providing financial services and engaging in credit activities for 10 years and cancelled the Australian financial services and credit licences held by Freedom Wealth Services Pty Ltd. ASIC found that Newbound relied on service agreements containing signatures that had not been provided by clients and created, or caused to be created, inaccurate file notes to justify charging ongoing service fees. ASIC concluded that the conduct demonstrated Newbound was not a fit and proper person to participate in the financial services industry. Newbound and Freedom Wealth Services have appealed the decision to the Administrative Review Tribunal.
• ASIC has permanently banned Abdullah Popal from providing financial services and engaging in credit activities following fraud convictions. A NSW court found that in late 2024, Popal dishonestly transferred $89,932 from former clients’ bank accounts into accounts held in his own name while acting as a signatory on self-managed super fund accounts. He was convicted of two counts of obtaining a financial advantage by deception and sentenced to a 12-month intensive correction order and 220 hours of community service. ASIC said the conduct demonstrated a serious breach of trust and permanently prohibited Popal from working in, controlling, or performing any role within the financial services and credit industries.
• ASIC has permanently banned former Brite Advisors responsible manager Gerard Duffy from providing financial services after finding he was not a fit and proper person. ASIC found that Duffy failed to disclose and manage conflicts of interest and demonstrated a lack of honesty and integrity during examinations conducted by the regulator. In particular, ASIC found he failed to disclose his employment with the Australian Financial Complaints Authority while also maintaining a relationship with Brite Advisors. The regulator said the conduct raised serious concerns about Duffy’s integrity and permanently prohibited him from working in or controlling any financial services business.

Registered Agent Cancellations

ASIC cancelled the registered agent status of two companies:

• ASIC has cancelled the registered agent status of Registration Pty Ltd and Biz Australia Pty Ltd for breaching ASIC’s Registered Agent Terms and Conditions. The companies, which are affiliated with the reg.com.au website, had previously been suspended before the regulator moved to permanently revoke their registration. ASIC said the action forms part of its efforts to protect small businesses from potentially misleading practices and follows earlier warnings advising businesses to avoid paying unnecessary fees to third-party service providers.

Director Disqualifications

ASIC disqualified three individuals from managing corporations:

• ASIC has disqualified NSW director Genna Raber from managing corporations for five years following the collapse of three construction companies that owed creditors more than $14.5 million. ASIC found that Raber improperly used his position for personal benefit, failed to maintain adequate financial records, allowed companies to trade while insolvent, and neglected statutory reporting obligations. The regulator also found he continued to manage one company while serving a previous director disqualification. ASIC said Raber demonstrated a complete disregard for his duties as a director and imposed the maximum disqualification period available under the law.
• ASIC has disqualified Shashikumari Agrawal from managing corporations for the maximum period of five years over her involvement in the collapse of eight companies within the Mansa Group. The failed companies owe at least $76.9 million to more than 272 unsecured creditors. While ASIC acknowledged that her husband, convicted director Krishnakumar Agrawal, was the controlling force behind the group, it found that Mrs Agrawal showed a disregard for her legal obligations as a director. ASIC relied on liquidators’ reports in making its decision and said the disqualification reflected the seriousness of the governance failures associated with the group’s collapse.
• NSW directors Adam Rana and Joseph Tarzia have each been fined $10,000 after being convicted of failing to comply with director identification number requirements. The Court found that both directors continued acting as company directors without obtaining the mandatory identification numbers introduced to prevent illegal phoenix activity and improve corporate transparency. ASIC said the penalties reinforce the importance of complying with director identification obligations and supporting the integrity of Australia’s corporate register.

Cancelled registrations 

Registered company auditor hands in registration following independence concerns raised by ASIC

• ASIC has accepted John Gordon Owenell's application to cancel his registration as a company auditor after the regulator raised concerns about his alleged failure to comply with auditor independence and conflict-of-interest requirements under the Corporations Act and the APES 110 ethics code. ASIC's concerns centred on Mr Owenell's long-running relationship with a large proprietary company he audited for 19 consecutive years between 2007 and 2025, having previously served as its company secretary between 1988 and 2003 and conducted its internal audits between 2005 and 2007, which ASIC considered created significant self-interest and familiarity threats; no admissions were made, and ASIC acknowledged Mr Owenell was experiencing significant health issues and had intended to retire in 2026.

Other Enforcement Actions:

• The Australian Securities Exchange (ASX) has admitted engaging in misleading conduct in relation to statements made about the progress of its CHESS replacement project. ASIC alleged that ASX created a misleading impression regarding the status and readiness of the project despite significant underlying issues. The replacement program was ultimately abandoned after years of development delays and escalating concerns. ASIC said listed entities and market operators must ensure public statements accurately reflect project risks and progress to maintain market integrity.
• ASIC has warned private credit fund managers to ensure asset valuations and financial reporting practices remain robust as the sector continues to grow rapidly. The regulator expressed concerns about the potential for conflicts of interest, overly optimistic valuations and inadequate disclosure practices in private credit markets. ASIC said directors and responsible entities must ensure valuations are independently supportable and accurately reflect underlying risks. The warning forms part of ASIC’s broader focus on transparency and governance within the expanding private credit sector.
• ASIC has confirmed its regulatory approach to new laws prohibiting superannuation funds from advertising or promoting products to employees during the onboarding process. The regulator said the restrictions are intended to ensure workers can make independent superannuation choices without undue influence from employers or fund marketing activities. ASIC has encouraged funds and employers to review their onboarding processes to ensure compliance with the new requirements.
• ASIC has issued Report 833, Safeguarding super: How well are platform trustees monitoring risks to retirement savings?, in which it has warned that some superannuation platform trustees are failing to adequately protect members' retirement savings despite repeated regulatory warnings. The review of six platform trustees overseeing more than $300 billion in retirement savings (about three-quarters of total platform-managed funds) found significant gaps in monitoring harmful advice fee deductions, unusual fees and investment patterns, and high-risk superannuation switching activity, with ASIC Commissioner Simone Constant noting some trustees had not learned lessons from the collapses of the Shield Master Fund and First Guardian Master Fund, which cost more than 11,000 Australians roughly $1 billion, and warning that ASIC would not hesitate to take enforcement action where significant non-compliance is identified.
• ASIC has released Report 832, Lifting the bonnet: ASIC's review of car loans, finding that some car finance lenders are not paying enough attention to how their practices, including reliance on third-party dealers and brokers, affect consumers. The review found car loan costs varied widely and could be significant relative to loan size, with borrowers typically facing two establishment fees — a lender fee of $299 to $995 and a distributor fee ranging from a flat $912 up to $2,500. It  also found inconsistent hardship support and, in a reviewed sample of 250 loans, that 90% of consumers whose cars were repossessed and sold still owed more than half their total loan amount.  ASIC Commissioner Alan Kirkland stressing that responsibility for consumer outcomes cannot be outsourced to third-party distributors.

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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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