ASIC Enforcement Wrap: September 2026

Key September Takeaways:

• CashnGo to pay a $3.5 million penalty for its use of unfair contract terms in more than 47,000 standard form small amount credit contracts with customers
• Five individuals were sentenced for white-collar crime and insider trading, while a further two individuals were charged with criminal offences relating to financial crimes
• Regulating superannuation funds, including self-managed superannuation funds (SMSFs), continues to be an enforcement priority for ASICs

Spotlight – Directors’ Duties and Conflict of Interest Disclosure

ASIC commenced civil penalty proceedings against Anthony Heraghty, former CEO and Managing Director of Super Retail Group (ASX: SUL), alleging that he breached his directors’ duties and authorised misleading information to be provided to both the board and the market.

Super Retail Group is the parent company of a corporate group with interests including Supercheap Auto, Rebel, Macpac, and BCF. 

ASIC alleges Mr Heraghty failed to disclose and manage a conflict of interest arising from an alleged undisclosed personal relationship with a senior executive at the company, and that he participated in decisions affecting that executive’s employment and remuneration without disclosing his interest. ASIC Chair Sarah Court described this omission as a threat to market integrity and trust within Australia’s corporate sector. 

ASIC is seeking declarations, pecuniary penalties and disqualification orders. The matter serves as a pointed reminder that conflicts of interest must be disclosed and managed where they intersect with corporate decision-making. Boards and senior executives should ensure their conflict registers and disclosure processes are robust, documented and genuinely operational - not merely procedural.

September in Summary – Enforcement Actions and Outcomes

Civil Action

Civil Proceedings

ASIC commenced one civil proceeding in the Federal Court:

• ASIC commenced Federal Court proceedings against Clark Family Pty Ltd, alleging its websites falsely represented that they compared loans and insurance products and provided tailored recommendations to consumers. In reality, ASIC alleges that consumer enquiries were not compared at all, rather they were auctioned to the highest bidding broker through an internal bidding process. ASIC is seeking declarations, pecuniary penalties, injunctive relief and adverse publicity orders. The case is a reminder that “comparison” labels carry real obligations and consumers who believe they are receiving independent analysis are entitled to exactly that.

Civil Judgments

The Federal Court handed down judgment in one case:

• The Federal Court found that Choosi Pty Ltd contravened ss 12DB and 12DF of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act) by misleading consumers in relation to its funeral and life insurance comparison services. Choosi made representations through advertisements and its website that it compared insurance products from a range of funeral and life insurers. Instead, for its funeral insurance products, it compared policies issued by one insurer, and for its life insurance products, it compared policies issued by two insurers. The Court found that Choosi falsely gave consumers the impression that its comparison tool compared policies from a broader range of insurers than it did. The matter will return to court to determine penalties at a later date. 

Civil Penalties

The Federal Court ordered $3.5 million in civil penalties against CashnGo:

• The Federal Court imposed a penalty of $3.5 million against Venture 5 Group Pty Ltd (trading as CashnGo) for its use of unfair contract terms in more than 47,000 standard form small amount credit contracts with customers. CashnGo admitted that when a customer missed a repayment, its Default Term and Authority Terms allowed its automated systems to monitor a customer’s bank account balance and attempt to withdraw funds to recover payment as soon as funds became available without providing customers the ability to opt out. CashnGo admitted that these terms were unfair. ASIC sought orders from the Court, including the $3.5 million penalty, which CashnGo consented to. The Court also ordered that the Default Term and Authority Terms were void from 14 September 2026 in all current standard form small amount credit contracts.

Other Civil Actions

The New South Wales Supreme Court and Federal Court made other orders in two cases:

• The New South Wales Supreme Court has made orders to preserve the assets held through the Deckchair Trust, a trust associated with NSW accountant and former solicitor Christopher Malcolm Edwards. These orders follow earlier Court orders that provisional liquidators be appointed as interim receivers and managers of the assets held by Great Northern Morayfield Pty Ltd as trustee for the Deckchair Trust. ASIC sought the further orders after learning that Mr Edwards had changed the trustee for the Deckchair Trust from Great Northern Morayfield Pty Ltd to himself. 
• The Federal Court granted ASIC interim asset preservation, disclosure and travel restraint orders against Star Investment Group Australia Pty Ltd, Gondal Holdings Pty Ltd and their director Ijaz Ahmad. The orders relate to ASIC’s investigation into an investment scheme connected with the Lake Narracan Resort development in Victoria. The Court found reasonable grounds to suspect contraventions of the Corporations Act 2001 (Cth) (Corporations Act) and the ASIC Act and that interim measures were necessary to protect investors. Travel restraint orders of this kind – preventing a director from leaving Australia – are among the most significant interim tools available to ASIC, and the granting of these orders signals the Court’s view that the risk to investors is live and immediate.

Criminal Action

Criminal Charges

Two individuals were charged with criminal offences:

• Donald Cuthbertson, a former financial services company director and financial adviser, has been charged with 24 offences in the Federal Court of Australia. These include 10 offences contrary to section 1041E of the Corporations Act, 12 offences contrary to section 1041G of the Corporations Act and two offences contrary to section 43(1) of the Crimes Act 1914 (Cth). The offences relate to Mr Cuthbertson’s conduct as the sole director of Professional Wealth Management Pty Ltd and related companies. He allegedly made a series of false, misleading or dishonest representations to existing and prospective investors.
• Emre Tahsin Basar has been arrested and charged with eight counts of dishonestly using his position as an employee to gain a financial advantage contrary to section 184 of the Corporations Act. While employed as a desk assistant by BW Equities Pty Ltd, an equities advisory business, Mr Basar allegedly traded shares between 11 and 17 February 2026 that were held in a client's account without the client's authorisation. ASIC alleges that the unauthorised share sales generated approximately $498,500. These funds were moved to an account in the name of Zorlu Capital Pty Ltd, of which Mr Basar is the sole director, secretary and shareholder.

Sentencing

Five individuals were sentenced in criminal matters:

• Kristian John Convery was convicted and sentenced in the Melbourne Magistrates Court after pleading guilty to two charges of acting as a self-managed superannuation fund (SMSF) auditor while disqualified by ASIC and one charge of falsifying audit documents with the intention of obtaining gain. Mr Convery was permanently disqualified by ASIC from acting as a SMSF auditor from 15 May 2024 but continued to act as an auditor between June 2024 and January 2025. Mr Convery was sentenced to a Community Corrections Order to undertake 60 hours of unpaid community work.
• Alexander John McCulloch, a former project manager at Beacon Minerals Limited, has been convicted and sentenced in the Supreme Court of Western Australia for one count of insider trading contrary to s1043A (1) of the Corporations Act. The charge relates to Mr McCulloch’s procurement of two associates to acquire 11,000,000 shares in Beacon Minerals while Mr McCulloch was in possession of insider information. He was sentenced to 12 months’ imprisonment to be released on a recognisance of $5,000 and to be of good behaviour for 2 years.
• Joanne Pellew has been sentenced in the District Court of Western Australia for three counts of dishonestly using her position as a director contrary to s184(2)(a) and one count of managing corporations while disqualified contrary to s206A(1)(a) of the Corporations Act. In May 2018, Ms Pellew made three transfers totalling $739,655 from Ochre Training Pty Ltd that were dishonest and unlawful. In June 2019, she participated in making decisions regarding Ochre People Pty Ltd while disqualified from managing corporations. She was sentenced to three and a half years’ imprisonment with a non-parole period of one year and nine months.
• Richard Evans, former chief executive officer of Big Un Limited, was convicted and sentenced in the District Court of New South Wales for communicating inside information to another person. On 10 April 2026, Mr Evans pleaded guilty to sharing inside information about a funding arrangement and customer onboarding with a shareholder. He was sentenced to one year and nine months’ imprisonment, to be served by way of an Intensive Correction Order with 400 hours of community service.
• Ian Omar Chester, a former Queensland property developer, has been sentenced to 9 years imprisonment in the Southport District Court following a guilty plea of aggravated fraud under the Queensland Criminal Code. Mr Chester dishonestly applied over $2.2 million in investor funds for his own use or for use by others, where some funds were paid into accounts in his name or to pay off debts he had personally incurred. Mr Chester was the sole director of approximately 18 companies used as investment vehicles for 5 property development projects. These projects raised funds from 190 investors, many of whom used part of their self-managed superfund to invest.

Administrative Action

Bans

Four individuals were banned by ASIC from providing financial services:

• Garry Peter Crole, former Sequoia Financial Group Limited managing director and chief executive officer, has been banned from performing, as a director or responsible manager, any function involved in carrying on a financial services business for 10 years, effective 4 September 2026. The ban relates to Mr Crole’s role as a former director and responsible manager of Interprac Financial Planning Pty Ltd (Interprac), where Interprac’s authorised representatives advised thousands of clients to invest their superannuation into the First Guardian Master Fund and Shield Master Fund. ASIC found that Mr Crole was not a fit and proper person, was not competent, and was aware of serious concerns of the representatives’ financial advice model but failed to adequately respond.
• Andrew Hanley and Shane Monte Silva, former financial advisors, have had their banning decisions by ASIC upheld by the Administrative Review Tribunal (ART). Mr Hanley and Mr Monte Silva have been banned for five years from providing financial services, controlling an entity that carries on a financial services business, or carrying on a financial services business. The ART found that both advisors had little involvement in the preparation of advice, provided materially similar advice to multiple clients despite their differing circumstances, and did not act in their clients’ best interests.
• The Administrative Review Tribunal varied ASIC’s permanent ban on financial adviser Noel Northcott, replacing it with a 10-year ban. The Tribunal agreed with ASIC’s findings that Mr Northcott engaged in dishonest and misleading conduct in relation to the Noon Investment Fund and Quant Fund, but considered a finite ban more proportionate. While the reduction is notable, the 10-year restriction still represents a significant and substantive bar on Mr Northcott’s participation in financial services.

Licence Suspension or Cancellation

One company had their Australian financial services licence (AFSL) cancelled:

• Redstone Capital Pty Ltd, a NSW-based financial services provider, has had their AFSL cancelled by ASIC, effective 28 August 2026. Its AFSL was cancelled after ASIC became aware that Redstone Capital had ceased to carry on a financial services business.

Director Disqualifications

ASIC disqualified one individual from managing corporations:

• Yuetu Ma, also known as Jack Ma, has been disqualified from managing corporations for four years due to his role as a director of failed companies Warwick Gold Holdings Pty Ltd and Impc Gold Ltd. Both Warwick Gold and Impact Gold entered liquidation in 2024 with substantial shortfalls. Both companies issued shares to raise funds for gold and precious metal mining operations. However, $44 million had been raised at the time the companies entered liquidation, with no assets having been identified. ASIC found that Mr Ma failed to meet his obligations as a director because his management of the companies fell well below standards.

Infringement Notices

ASIC issued seven infringement notices to four companies:

• The trustees of three superannuation funds have received six infringement notices from ASIC for allegedly false or misleading representations about their superannuation investment options on their websites. The Australian Retirement Trust Pty Ltd (ART), Tetra Servicing Pty Ltd (formerly Telstra Super Pty Ltd) (Telstra Super) and Australian Meat Industry Superannuation Pty Ltd (AMIST) each received two infringements notices totalling $39,600. The six infringement notices total $118,800. ART and Telstra Super have paid the notices, and AMIST has agreed to pay their notices.
• Fundo Loans Pty Ltd paid a $19,800 infringement notice issued by ASIC for allegedly making false or misleading representations on its website that consumers could obtain loans of up to $5,000 with “no credit check.” ASIC considered the advertising likely misled consumers, given that Fundo Loans required all loan applicants to consent to a credit check and conducted credit checks on some loan applications. The claim appeared on Fundo Loans’ website from 3 April 2023 until about 19 September 2025.

Interim Stop Orders

ASIC issued three interim stop orders:

• ASIC has issued interim DDO stop orders against three private credit products offered by Melbourne Securities Corporation (MSC) under the Remara Cash Management Fund, a registered management investment scheme. ASIC issued the orders because of deficiencies in the products’ target market determinations (TMD). ASIC is concerned the products were marketed as suitable for investors seeking capital preservation, assigned an inappropriately low risk rating, and suggested unsuitable portfolio allocations and capital access timeframes for retail investors. The orders prevent MSC from promoting, advising on, or issuing disclosure documents for the products to retail clients for 21 days unless revoked earlier.

Companies Auditors Disciplinary Board (CADB)

The CADB suspended or cancelled the registration of one auditor:

• Cameron Bradley, a company auditor and former partner of PKF Brisbane Audit, has had his registration suspended by the CADB from 15 September 2026 until 30 June 2028. ASIC referred Mr Bradley to the CADB regarding his conduct in three managed investment scheme audits in June 2025. The Board found that Mr Bradley failed to properly perform his duties as an auditor and failed to ensure PKF Brisbane Audit performed its duties in accordance with Australian Auditing Standards. The CADB determined that a three-year suspension was appropriate given that Mr Bradley voluntarily stepped down as a registered auditor.

Registered Liquidator Cancellations

ASIC cancelled the registered liquidator status of one liquidator:

• Ross Stephen Thomson’s application for cancellation of his registration as a liquidator following a request from ASIC has been accepted. ASIC raised concerns following an investigation including whether Mr Thomson was fit and proper person to remain registered and whether he had adequate resources to perform his duties as a liquidator. ASIC believes Mr Thomson may not have faithfully performed his duties as a liquidator.

Registered Agent Cancellations

ASIC cancelled the registered agent status of one company:

• ASIC cancelled the registered agent status of AGFA Accountants Pty Ltd for breaches of ASIC’s Registered Agent Terms and Conditions. ASIC requires all registered agents to comply with the terms and conditions of their registration, otherwise their registration will be suspended or cancelled.

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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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