ASIC has accepted a court enforceable undertaking from Perth-based advisory firm Lasarith Pty Ltd, trading as ‘Succession Matters’, and its sole director and responsible manager, Adam Smith.
The regulator states it commenced an investigation after becoming concerned that Lasarith and its authorised representatives had failed to provide statements of advice to clients as required by the Corporations Act. The regulator notes its investigation subsequently identified:
- At least 24 occasions during the 2016/17 and 2017/18 financial years when Lasarith and its authorised representatives failed to provide a statement of advice to clients in accordance with s946A of the Corporations Act
- At least 30 occasions during the 2016/17 and 2017/18 financial years when Lasarith and its authorised representatives failed to provide a statement of advice to clients within the period specified in s946C of the Corporations Act.
ASIC noted that, despite his knowing about the failure to provide statements of advice since at least 7 March 2017, its investigation found Smith:
- Failed to take sufficient action to prevent breaches of the Corporations Act from occurring, until September 2017
- Failed to cause Lasarith to notify ASIC of the breaches until September 2021
- Did not fulfill all of his obligations as the responsible manager of Lasarith during the 2016/17 and 2017/18 financial years
Under the terms of the EU, Lasarith will cease operating its financial services business under its AFSL and commence the process to cancel its AFSL by 8 February 2023.
ASIC advises Smith has also undertaken to conduct further professional training and not to be a responsible manager of any other AFSL holder for a period of at least 18 months from 10 November 2022.
Background
While accepting responsibility for the circumstances of the breaches, Smith confirmed the acceptance of the court enforceable undertaking this week concludes a period of investigation by ASIC that commenced in August 2019.
…no clients have been financially harmed because of the breaches
His understanding is that no clients have been financially harmed because of the breaches.
Smith and his colleagues have elected to transition their business to operate under the AFSL of an existing dealer group from January 2023, which he says they are looking forward to.
