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16-448MR ASIC banning of Gerard McCormack set aside on appeal
The Administrative Appeals tribunal (AAT) has set aside a decision by the Australian Securities and Investments Commission (ASIC) to ban Mr Gerard McCormack from providing any financial services.
Mr McCormack, of South Melbourne, Victoria, a former financial adviser with the National Australia Bank (NAB) was banned from providing financial services for five years commencing on 12 February 2016 after ASIC found he had engaged in misleading and deceptive conduct in relation to a financial product or financial service in breach of section 1041H of the Corporations Act (refer: 16-059MR).
The AAT delivered its decision on 14 December 2016 following Mr McCormack's application for review. While finding that Mr McCormack did breach s.1041 of the Act, the AAT set aside ASIC's decision to ban Mr McCormack on the basis that, in the circumstances of the case, a banning order would not serve the intended purposes of such an order.
A copy of the AAT's decision and reasons for decision can be found here.
Editor's note 1:
On 11 January 2017, ASIC filed a Notice of Appeal in the Victorian Registry of the Federal Court. The first case management hearing has been listed for 2 February 2017.
Editor's note 2:
On 1 June 2017, the Federal Court heard ASIC's appeal case and reserved its decision.