ASIC has banned Mark Schroeder from providing financial services for six years for his role in numerous compliance failures by Spectrum Wealth Advisers Pty Ltd (Spectrum).
Mr Schroeder was a director, chief executive officer, responsible manager and a key person for Spectrum.
ASIC found that Mr Schroeder, as the most senior manager at Spectrum and the person primarily responsible for its activities and day-to-day management, was involved in Spectrum’s contraventions of financial services laws.
ASIC also found that Mr Schroeder is likely to contravene a financial services law in future because of his involvement and responsibility for Spectrum’s failures and because of his poor understanding of the obligations of providers of financial services, particularly regarding compliance matters.
ASIC’s surveillance identified serious concerns about Spectrum’s compliance with its obligations as an Australian financial services (AFS) licensee, and that it failed to do all things necessary to ensure that financial services were provided efficiently, honestly and fairly.
ASIC found that Spectrum did not take reasonable steps to ensure its representatives complied with the law. The licensee failed to audit its representatives regularly and ensure that its representatives were adequately trained and competent.
Spectrum also did not have sufficient human and technological resources to meet its licence obligations.
ASIC Commissioner Danielle Press said, ‘ASIC expects that people holding a position of responsibility with an AFS licensee, particularly directors and responsible managers, understand the obligations of financial services providers and make every effort to ensure compliance.’
Shortly after being issued with a notice of hearing, Spectrum ceased trading and its parent company, Freedom Insurance Group, applied to ASIC to cancel Spectrum’s AFS licence.
Mr Schroeder’s banning has been recorded on ASIC’s publicly available .
Mr Schroeder is continuing to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
Background
On 21 October 2019, Mr Schroeder applied to the Administrative Appeals Tribunal for review of ASIC’s banning decision, together with a request for a stay of ASIC’s decision and for confidentiality orders. A hearing in relation to his request was due to be held on 10 February 2020. ASIC was notified on 4 February 2020 that Mr Schroeder was withdrawing his request for stay and confidentiality orders.
