The Administrative Appeals Tribunal (AAT) has affirmed ASIC’s decision to permanently ban former Astarra Asset Management Pty Ltd (AAM) director Eugene Liu from providing financial services.
In affirming ASIC’s decision, AAT Senior Member Ms Redfern said, ‘There is no evidence to suggest that Mr Liu has reformed or that he admits and is remorseful about his conduct. He takes no responsibility for the significant losses of investors in ASF (Astarra Strategic Fund)’.
The AAT’s decision was handed down on Friday, 31 October 2014.
The AAT upheld ASIC’s decision following Mr Liu’s request for a review of his ban. This was heard in April 2014.
ASIC removed Mr Liu from the financial services industry in March 2013 for his role in the collapse of AAM in December 2009. Mr Liu was AAM’s chief investment strategist.
ASIC’s investigation found Mr Liu engaged in dishonest conduct and conduct that was misleading or likely to mislead (refer: 13-041MR)
ASIC Commissioner John Price said, ‘The AAT’s decision confirms our findings that Mr Liu, through his actions, has no right to deal with the public.
‘Australian investors should be confident and informed, and ASIC will act against those individuals who attempt to disrupt this in any way.’
Background
AAM was one of the groups caught up in the collapse of Trio Capital.
ASIC’s investigation into the collapse saw more than 11 people either jailed, banned from providing financial services, disqualified from managing companies or removed from the financial services industry for a total of more than 50 years.
The AAT was not satisfied that Mr Liu himself ‘carried on a financial services business’ and therefore found that he did not breach section 1041G of the Corporations Act 2001 (Corporations Act). The AAT made no determination as to whether Mr Liu may have been knowingly concerned in the contravention by Shawn Richard or AAM of section 1041G under section 79 of the Corporations Act because it was satisfied that there was reason to believe Mr Liu was not of good fame or character.