The Sharemarket College Pty Ltd and Australian Securities and Investments Commission

The Administrative Appeals Tribunal considered decisions made by the Australian Securities and Investments Commission (ASIC) to cancel The Sharemarket College Pty Ltd's Australian Financial Services Licence (AFSL) and to ban its directors, Graeme and Jill Rogers, from providing financial services. The dispute arose from allegations that the College had contravened its AFSL conditions and financial services laws through its marketing activities, specifically by sending misleading or deceptive emails and providing personal financial advice when only authorised to provide general advice.

The Tribunal was required to determine whether the cancellation of the AFSL and the banning orders against Mr and Mrs Rogers were appropriate. Specifically, it needed to assess whether the College's conduct constituted breaches of its licence conditions and financial services laws, and whether the proposed regulatory actions were justified in light of these contraventions. The Tribunal also had to consider the mitigating circumstances presented by the applicants, including the impact of ill-health on their ability to manage the College's compliance.

Deputy President Bernard J McCabe affirmed ASIC's decision to cancel the College's AFSL and to ban Mr Rogers from providing financial services for four years. The Tribunal reasoned that systemic failures in the College's compliance regime, evidenced by misleading emails and unauthorised personal advice, warranted such action. While acknowledging the ill-health of the applicants, the Tribunal was not persuaded that this adequately excused the contraventions or that the College, being largely the creation of Mr and Mrs Rogers, could reliably remedy its defects. Consequently, a suspension of the AFSL was deemed an insufficient alternative to cancellation.

The Tribunal varied the decision concerning Mrs Rogers, reducing her banning period from three years to two years. The Tribunal affirmed the cancellation of the AFSL and the four-year banning order for Mr Rogers, but reduced Mrs Rogers' banning period to two years.