ASIC Bans Former Adviser from Providing Financial Services

The Australian Securities and Investments Commission (ASIC) confirmed today that it has imposed a ban on Mark Babbage, a Melbourne-based former adviser. According to the details provided by the commission, the 10-year ban prohibits Babbage from providing financial services.

Additionally, Babbage can’t engage himself in credit activities for 10 years. ASIC noted that the former adviser was convicted for 3 charges related to a failure to comply with a direction under the Emergency Management Act 2005.

The banning order, which took effect on 11 March 2022, will not allow Babbage to control any entity that is involved in financial services or credit-related businesses. “The commission is satisfied that Mr Babbage lacks the honesty and integrity to participate in the financial services and credit industries,” ASIC noted.

The recent news from ASIC came on the back of some strong measures against financial violations. Between July 2021 and December 2021, the commission imposed AU$84.3 million (around $63.4 million) in civil penalties. In March 2022, ASIC imposed a permanent ban on Roderick Halligan, a Brisbane-based former authorized representative, from providing financial services.

Background of Babbage’s Ban

Babbage has been involved in financial services during the last few years. Between 6 February 2013 and 5 March 2014, he worked as an authorized representative of Wealthsure Pty Ltd. Moreover, he served as an authorized representative at Capstone Financial Planning Pty Ltd from 6 March 2014 until 14 October 2021.

“Babbage was the director of Babbage Finance Pty Ltd until 13 October 2021. Babbage Finance Pty Ltd was a credit representative of My Local Broker from 3 August 2017 until 1 December 2021. Section 920A of the Corporations Act gives ASIC the power to ban a person who has been convicted of fraud. As a further result of his fraud conviction, Mr Babbage is also automatically disqualified from managing corporations for five years,” ASIC added.