ASIC bans former director of Provident Capital Limited
ASIC has banned Mr Trevor John Seymour, a former director of Provident Capital Limited (Provident Capital), from managing corporations for three years and providing financial services for three years.
The ban follows an ASIC investigation which found Mr Seymour breached his duties as a director and failed to comply with financial services laws.
Mr Seymour, of Campbelltown, New South Wales, was a director of Provident Capital from 25 May 1998 to 17 December 2013. Provident Capital went into receivership on 3 July 2012 and into liquidation on 24 October 2012.
ASIC’s investigation found Mr Seymour breached his obligations as a director of Provident Capital and engaged in conduct that was misleading or deceptive in relation to financial products by approving a number of documents issued by Provident Capital, namely:
- 15 Quarterly and 7 Benchmark Reports issued to ASIC and Australian Executor Trustees Limited, which contained misleading statements and which were misleading or deceptive, and
- a Debenture Prospectus in December 2010, issued to raise funds from the public, which contained misleading statements and which were misleading or deceptive; and
- Information Booklets in 2012, which were deficient.
ASIC Commissioner John Price said, ‘Directors of financial services companies have a clear responsibility to ensure the company provides accurate and credible information upon which investors can rely. ASIC will act to remove people who fail in their corporate governance and compliance obligations, for the protection of the public’.
Mr Seymour has been granted permission by ASIC to manage Raintron Pty Ltd (the trustee of his self-managed superannuation fund) and Garde Pty Ltd (a trustee company which acts as an executor of an estate) on the basis that altering the arrangements to accommodate his disqualification is disproportionate to the risk to the public given the limited activities of these companies. He is also permitted to act as a director of trading company of his accountancy practice – Bretnalls NSW Pty Ltd – so long as he is not the sole director and on the basis that he continues to be involved in its day to day business.
Mr Seymour has filed an application with the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
ASIC’s investigation is continuing.
Source: Australian Securities and Investment Commission (ASIC)
