ASIC has permanently banned Sydney-based director David Henty Sutton from providing any financial services, performing any function involved in the carrying on of a financial services business and controlling an entity that carries on a financial services business.
ASIC has also cancelled the Australian financial services licence of Mr Sutton’s company, McFaddens Securities Pty Ltd (McFaddens), now known by its previous name, APC Securities Pty Ltd.
ASIC’s concerns arose out of Mr Sutton’s conduct in making offers of investment in unlisted shares via McFaddens to Australian and overseas investors in companies including Steppes Alternative Asset Management, Trinus Impact Capital, Avalon Pacific Group Limited (APG) and ASAF Critical Metals and its Australian subsidiary, Aus Streaming Limited.
Mr Sutton has also been disqualified from managing corporations for five years.
ASIC determined that Mr Sutton is not a fit and proper person to provide financial services due to his conduct when he:
- induced another person/s to deal in financial products by making a statement that is misleading, false or deceptive or by a dishonest concealment of material facts;
- made false, misleading or deceptive representations in his capacity as a director of McFaddens and APG to potential investors;
- engaged in conduct regarding a financial product that was misleading and deceptive or was likely to mislead and deceive;
- did not taking reasonable steps to ensure McFaddens’ representatives did not accept conflicted remuneration; and
- was involved in and facilitated misconduct by Kristofer Ridgway (23-095MR).
ASIC also found that Mr Sutton failed to exercise his power and discharge his duty with care and diligence in relation to his directorships of Paltar Petroleum Limited and Aus Streaming Limited.
McFaddens and Mr Sutton and have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Mr Sutton’s banning is recorded on ASIC’s banned and disqualified register.
McFaddens, formally known as Dayton Way Financial Pty Ltd, Avalon Pacific Capital Pty Ltd and APC Securities Pty Ltd is an Australian financial services firm based in Sydney which has held AFS licence no. 338943 since 16 September 2009.
Mr Sutton became the director of McFaddens on 6 July 2009 and has been the key person on the licence since 15 September 2009.
On 25 July 2023, Mr Sutton appealed ASIC’s ban to the Administrative Appeals Tribunal. McFaddens have also appealed ASIC’s decision to cancel its licence.
Editor's note 2:
On 12 October 2023, Mr Sutton and McFaddens withdrew their appeals with the Administrative Appeals Tribunal.