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A solicitor already barred from providing financial advice has been denied a practising certificate as ASIC targets 12 of his companies.
Christopher Malcolm Edwards, who practised out of Christopher M Edwards Solicitors and Accountants in Richmond, NSW, had his application to renew his practising certificate refused.
The Council of the Law Society of NSW found Edwards was “not a fit and proper person to hold a practising certificate”.
Seven months ago, the Australian Securities and Investments Commission (ASIC) banned Edwards from providing financial services and controlling an entity that carries on financial services business, either alone or with others, for 10 years.
ASIC alleged Edwards provided financial product advice to a sample of clients “with sufficient system, repetition and continuity” over four years despite not holding an Australian Financial Services Licence or authorisation from an AFS licensee.
The watchdog said Edwards’ conduct in allegedly approaching accounting and legal clients with recommendations to invest in companies he controlled was “particularly serious”.
Edwards has since applied to the Administrative Review Tribunal to have the banning decision overturned.
About a week after his practising certificate renewal application was refused, ASIC applied to the NSW Supreme Court to wind up 12 of his companies because it “holds concern about [their] management”.
ASIC also applied for the appointment of provisional liquidators for the companies to enable an independent assessment of their affairs and protect the interests of creditors.
The watchdog said it is concerned that the companies continue to raise funds in circumstances where the application of that money raised from investors is “unclear”. The companies also have significant unsecured interest-bearing liabilities to investors.
The companies failed to comply with statutory obligations to prepare and lodge audited financial statements for the financial years ended 30 June 2022 and 30 June 2025 in accordance with ASIC directions.
In 2010, ASIC commenced wind-up proceedings against one of the 12 companies, Great Northern Developments.
ASIC was substantially successful in establishing that there were contraventions under the Corporations Act 2001, but the court decided against the wind-up, citing factors including the potential impact on the value of the company’s projects.
Investors who elected to continue were transferred into registered management investment schemes operated by La Trobe Financial Asset Management Limited, while those who did not wish to join the schemes were repaid their original investments.
A directions hearing has been listed for 20 April.
ASIC’s investigation into the fundraising for the companies and the application of those monies raised is continuing.
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