ASIC has banned Ian Williams, Peter Daly and Paul Raftery from providing any financial services for a period of five years each. They were all directors of Linchpin Capital Group Ltd (Linchpin) and Mr Williams and Mr Raftery were also directors of Endeavour Securities (Australia) Ltd (Endeavour).

ASIC’s banning decisions were made in November 2019. Following this, Mr Williams, Mr Daly and Mr Raftery each appealed to the Administrative Appeals Tribunal (AAT). They applied for a stay of the decision and a confidentiality order preventing ASIC from publishing information about the banning order until the decision had been reviewed by the AAT.

On 29 April 2020, the AAT heard the applications for stay and confidentiality orders for each of the applicants. On 27 May 2020, the AAT dismissed the applications for stay and confidentiality orders by Mr Williams, Mr Daly and Mr Raftery. The hearings for the review of the banning decisions have not yet been listed for any of the applicants.

ASIC banned Mr Williams, Mr Daly, and Mr Raftery for their roles in the operation of managed investment schemes by Linchpin and Endeavour. ASIC found that they each:

• failed to act in the best interests of the members of the Investport Income Opportunity Fund; and
• used their position as officers of the companies to gain an advantage for other persons and cause detriment to members of the Investport Income Opportunity Fund. 

ASIC found that Mr Williams, Mr Daly and Mr Raftery did not understand the importance of the duties of directors to protect members of the managed investment schemes and, as a result, their conduct put significant amounts of other people’s money at risk.

The banning orders for Mr Williams, Mr Daly, Mr Raftery have been recorded on ASIC’s Banned and Disqualified Register.

Background

In separate proceedings in March 2019, ASIC obtained orders in the Federal Court against Linchpin and Endeavour for contravening multiple provisions of the Corporations Act while operating two managed investment schemes, both called ‘Investport Income Opportunity Fund’. The court made orders that Endeavour and Linchpin contravened multiple provisions of the Corporations Act and ordered the winding up of Endeavour, Linchpin and the two Investport Income Opportunity Funds (19-065MR).

Mr Jason Tracy and Mr David Orr from Deloitte have been appointed as liquidators of the entities. Investors and creditors should direct their enquiries to: linchpin@deloitte.com.au.

ASIC also banned Mr Nielsen, who was a director of Linchpin and Endeavour. On 26 November 2019, ASIC published information about the banning of Mr Nielsen (19-320MR).

Editor's note:

On 21 July 2020, Mr Ian Williams withdrew his AAT application and it was dismissed. The banning order made against Mr Williams in November 2019 for a five-year period remains in effect.

Editor's note 2:

On 3 August 2020, Mr Paul Raftery withdrew his AAT application and it
was dismissed. The banning order made against Mr Raftery in November 2019 for a five-year period remains in effect.

Editor's note 3:

On 28 September 2020, the AAT heard a further application by Mr Daly for a stay. The AAT decision has been reserved.

Editor’s note 4:

On 29 October 2020, the AAT refused Mr Daly’s further request for a stay.

Editor's note 5: 

On 26 November 2020, Mr Daly filed an appeal with the Federal Court against the AAT’s decision to refuse his request for a stay.

Editor's note 6:

A case management hearing for Mr Daly’s appeal to the Federal Court has been set for 16 April 2021.

Editor's note 7:

The case management hearing for Mr Daly’s appeal to the Federal Court has been relisted for 23 April 2021.

Editor's note 8:

On 29 November 2021, the Federal Court heard Mr Daly's appeal regarding the AAT’s decision to refuse his request for a stay in the AAT proceeding. Justice Davies made orders that the appeal be dismissed and Mr Daly pay ASIC's costs. 

Editor's note 9:

A hearing for Mr Daly’s appeal to the Administrative Appeals Tribunal has been listed for 6 June to 10 June 2022.

Editor's note 10:

A directions hearing for Mr Daly’s appeal to the Administrative Appeals Tribunal has been listed for 16 May 2022.

Editor's note 11:

On 23 May 2022, the AAT received written notification from Mr Daly requesting the withdrawal of his appeal of ASIC’s decision to ban him from providing any financial services for a period of five years. Accordingly, on 25 May 2022 (effective 23 May 2022), the AAT dismissed Mr Daly’s application.