Masu Financial Management Pty Ltd and Australian Securities and Investments Commission (General)

This matter concerned an appeal by Masu Financial Management Pty Ltd (MASU) against a decision by a delegate of the Australian Securities and Investments Commission (ASIC) to suspend MASU's Australian Financial Services Licence. The dispute arose from MASU's historical non-compliance with its obligations under section 912A of the Corporations Act 2001 (Cth). MASU had engaged external consultants to address identified compliance issues and had revamped its compliance documents and processes.

The court was required to determine whether the delegate's decision to suspend MASU's licence was justified. Specifically, the court had to consider whether MASU continued to contravene its obligations under section 912A and whether there was a likelihood of future contraventions, despite MASU's efforts to rectify past deficiencies.

Deputy President Bernard J McCabe P affirmed the delegate's decision, reasoning that while MASU had largely addressed historical non-compliance, the prolonged nature of these past issues and the fact that the same key officers remained in control of the company raised serious concerns about future compliance. The court found that the history of non-compliance, which persisted over a significant period and was only uncovered through regulatory intervention, indicated a systemic issue. Despite the implementation of enhanced compliance arrangements, the shortcomings of the management team in the past led the court to conclude that there was a reasonable likelihood of future contraventions of MASU's obligations under section 912A.