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Thursday 3 December 2015

15-363MR ASIC permanently bans former Equititrust CEO

ASIC has permanently banned Mark McIvor, former Chief Executive Officer and founding director of Equititrust Limited (in liquidation) (Equititrust), which was the responsible entity of the Equititrust Income Fund (EIF) and collapsed in 2011.

Mr McIvor, of Labrador, Queensland, is banned from providing any financial services on the basis that he had contravened a financial services law and was not of good fame or character to provide financial services.  His conduct involved breaches of the financial services legislation, which were considered to be very serious, repetitive, prolonged and dishonest.

An ASIC investigation found that between 1 January 2004 and 18 September 2008, whilst he was the director of the responsible entity of EIF, Mr. McIvor:

  • failed to take all the steps that a reasonable person would take, if they were in the officer's position, to ensure that the responsible entity complied with the EIF's compliance plan; and
  • signed 28 board meeting minutes, which falsely recorded a board meeting to approve a loan application had occurred, when no such board meetings had taken place.

ASIC Commissioner John Price said "ASIC expects high standards of honesty and integrity from anyone providing financial services. Anyone who fails to meet those standards must be excluded from providing such services."

Mr McIvor has 28 days in which to apply to the Administrative Appeals Tribunal to review the decision.

Background

Equititrust was incorporated on 18 August 1993 and was placed into voluntary administration on 15 February 2012.  The creditors of Equititrust resolved that the company should be placed into liquidation on 20 April 2012.

Equititrust held an Australian Financial Services Licence (AFSL) and was the responsible entity of two registered schemes, the Equititrust Income Fund (EIF) and the Equititrust Priority Class Income Fund (EPCIF).  It was also trustee of an unregistered managed investment scheme, called the Equititrust Premium Fund (EPF). 

The voluntary administrators of Equititrust reported that as at the date of their appointment:

  • EIF had about 1620 unitholders who were owed approximately $203.6 mil.
  • EPF had about 38 unitholders who were owed approximately $56.7 mil; and
  • EPCIF had 5 unitholders and held no tangible assets.

Mr McIvor was made bankrupt on 28 November 2012.

On 19 December 2011, ASIC suspended the AFSL of Equititrust for 12 months, for failing to comply with a number of key obligations as a financial services licensee. (REF: 11-306MR)

On 22 August 2014, Mr McIvor was convicted and fined $10,000 in the Brisbane Magistrates Court of six charges of failing to provide a Report as to Affairs and to deliver books and records to the liquidators of Chevron Capital Pty Ltd, MHSM Holdings Pty Ltd and SM Capital Pty Ltd. (REF 14-223MR).

Last updated: 30/03/2021 09:33