ASIC has banned former Trio Capital Limited chief executive Rex Phillpott from working in the financial services industry or becoming a director of any company for 15 years.
The corporate regulator also banned Natasha Beck, a former director of collapsed investment group Trio, for two years from working in financial services or becoming a director of any company with the exception of her own, Rumi Holdings.
ASIC said it entered into enforceable undertakings (EU) with Phillpott and Beck and, as part of the EUs, they agreed to be banned from the industry for varying periods.
Phillpott was the CEO, director and secretary of Trio from October 2005 to January 2010. He was also on the company’s risk and compliance committee.
Beck was a non-executive director of Trio Capital from June 2008 and was a member of its investment committee from September 2009.
“ASIC is concerned that both Mr Phillpott and Ms Beck failed in their duties as officers of the responsible entity of the Astarra Strategic Fund,” ASIC chairman Greg Medcraft said of hedge fund of funds Astarra, which was run by Trio.
“ASIC believes it’s appropriate that they not be involved in the financial services industry or act as directors.”
The EUs follow a guilty plea by Shawn Richard to two charges of dishonest conduct in relation to his role as a director of the investment manager of the Astarra Strategic Fund. Richard is on bail awaiting sentence.
It also follows the EU from financial planner Kilara Financial Solutions Pty Ltd, which recommended retail investors switch their superannuation holdings into a fund of which Trio was the responsible entity. In addition, Kilara issued defective statements of advice or, in some cases, no statements.
