Customers of Berndale Capital Securities can continue to file complaints with AFCA

Maria Nikolova

The company, whose license was cancelled by ASIC in November 2018, remains a current member of the new Australian dispute resolution body AFCA.

The Australian Financial Complaints Authority (AFCA) has set up a special page for customers of Berndale Capital Securities Pty Ltd, whose AFS license was cancelled by the Australian Securities & Investment Commission (ASIC) in November last year.

AFCA is aware that ASIC has obtained freezing orders from the Federal Court against Berndale and its principals.

The regulator suspects that Berndale and its ex-director Stavro D’Amore may have breached client money obligations, and contravened other laws. Berndale was a retail OTC derivative issuer and its Australian Financial Services licence was cancelled on November 22, 2018. At the same time, Mr D’Amore was banned from providing financial services for a period of six years.

Berndale and ASIC appeared before Justice O’Callaghan in the Federal Court in Melbourne on December 19, 2018, following ASIC’s initial application and interim orders.

The matter is next before the Federal Court on a date to be fixed in February 2019.

Let’s recall that ASIC found that Berndale:

  • failed to take reasonable steps to ensure that its representative complied with financial services laws;
  • failed to have adequate financial and human resources;
  • failed to maintain an appropriate internal dispute resolution system;
  • failed to provide financial services efficiently, honestly and fairly;
  • failed to comply with the client money reporting requirements;
  • failed to lodge annual financial statements, and audit reports; and
  • is likely to contravene its general obligations as an AFS licensee.

ASIC also found Mr D’Amore:

  • was involved in contraventions of financial services laws by Berndale;
  • is not adequately trained, or is not competent, to provide financial services; and
  • is likely to contravene a financial services law.

Berndale’s bank accounts are now frozen and it is unable to sell or otherwise deal with its property without ASIC’s consent.

Berndale, however, remains a current member of AFCA. This arrangement will continue until at least May 23, 2019. This means that consumers can continue to lodge complaints about Berndale’s conduct and services with AFCA.

AFCA will continue to consider and handle complaints against the financial firm.

At this stage, given the current ASIC investigations and the freezing of Berndale’s assets, AFCA is unable to advise about the status of client’s funds and return of funds to clients or other compensation that may be payable. Possible outcomes may also include Berndale being placed into liquidation and/or receivership. The body is currently investigating any professional indemnity insurance cover that Berndale may have.

Read this next

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

<