ASIC cancels McFaddens’ AFSL and bans David Sutton for life

Rick Steves

The Australian regulator determined that David Sutton is not a fit and proper person to provide financial services.

The Australian Securities and Investments Commission has cancelled the Australian financial services licence of McFaddens Securities Pty Ltd and 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.

David Sutton has also been disqualified from managing corporations for five years. McFaddens is an Australian financial services firm based in Sydney which has held AFS license no. 338943 since 16 September 2009.

McFaddens Securities Pty Ltd, which is now known by its previous name, APC Securities Pty Ltd, was used by David Sutton as the broker-dealer for investment offerings of unlisted shares 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.

David Sutton was also a director of the unlisted Australian-registered company ALT Financial Group. Under his McFaddens Securities business, Sutton promoted and did the administration for a scheme in which shares sold to investors were never listed.

He was also involved in and facilitated misconduct by Brisbane-based former financial adviser Kristofer Ridgway, who was permanently banned from having any involvement in financial services in April.

The Australian regulator determined that David 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).

David Sutton also 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, the financial watchdog stated.

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