This article is from the Australian Property Journal archive
THE corporate regulator has banned Trevor Seymour, a former director of Provident Capital, which collapsed owning $130 million to 3,000 investors, from managing corporations for three years and providing financial services for three years.
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The ban follows an ASIC investigation which found Seymour breached his duties as a director and failed to comply with financial services laws. ASIC’s investigation found Seymour breached his obligations as a director of Provident Capital and engaged in conduct that was misleading or deceptive in relation to financial products
Seymour was a director of Provident Capital from 25 May 1998 to 17 December 2013.
Provident Capital issued debentures to retail investors and advanced the debenture funds to third party borrowers, including property developers, on a first mortgage basis. It also operated a mortgage fund under a wholesale facility with Bendigo and Adelaide Bank and two managed investment schemes.
The company went into receivership on 3 July 2012 and into liquidation on 24 October 2012, owing approximately $130 million to 3,000 debenture holders. Provident Capital’s receivers (PPB Advisory) have estimated that the likely return to debenture holders will be in the range of $0.17 to $0.19 in the dollar.
“Directors of financial services companies have a clear responsibility to ensure the company provides accurate and credible information upon which investors can rely. ASIC will act to remove people who fail in their corporate governance and compliance obligations, for the protection of the public,” ASIC commissioner John Price said.
Seymour has been granted permission by ASIC to manage Raintron Pty Ltd (the trustee of his self-managed superannuation fund) and Garde Pty Ltd (a trustee company which acts as an executor of an estate) on the basis that altering the arrangements to accommodate his disqualification is disproportionate to the risk to the public given the limited activities of these companies.
He is also permitted to act as a director of trading company of his accountancy practice – Bretnalls NSW Pty Ltd – so long as he is not the sole director and on the basis that he continues to be involved in its day to day business.
Seymour has filed an application with the Administrative Appeals Tribunal (AAT) for a review of ASIC`s decision.
Australian Property Journal
