ASIC Bans Another Director at Jade Capital Matthew McCrow

The Australian Securities and Investments Commission (ASIC), announced this Monday that it has banned a director of Jade Capital Partners (Jade Capital), Matthew McCrow, from providing financial services for five years, starting from January 15 this year.

Jade Capital is a provider of managed discretionary account (MDA) services, trading in the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term), commodities, futures and derivatives markets, among others.

On the 11th of January, the company had its Australian financial services (AFS) license canceled by the regulator, due to widespread non-compliance for financial services laws. At the same time, another one of the company’s directors, James Clinnick, was banned for four years.

Today, however, the Australian watchdog said it had banned McCrow because he was involved in the company’s breach of the law. Specifically, Jade Capital advertised misleading returns, fees and costs, performance history and results relating to MDA strategies, the statement said.

McCrow was not Adequately Trained to Advise in FX Contracts

Furthermore, the Sydney-based company did not ensure that McCrow was trained and competent for his role. Not only this, but the regulator found that he also did not have sufficient training or knowledge to provide product advice about MDAs, forex contracts, or other derivatives.

“ASIC’s surveillance also revealed that, as a representative of Jade Capital, Mr McCrow had failed to comply with financial services laws on many occasions over a significant period. Mr McCrow had failed to act in the best interests of his clients or prioritise their interests,” ASIC said in the statement today.

“Instead, he had recommended MDA strategies without adequately considering his clients’ goals, circumstances and financial situation or the suitability of the strategies he was recommending. ASIC also found that fees and cost disclosures in advice documents provided by Mr McCrow to clients were misleading.”

Following the cancellation of Jade Capital’s license, McCrow applied to the Administrative Appeals Tribunal (AAT) for review and a stay of ASIC's decision on the 23rd of January. However, he withdrew the stay of application less than a month later on February 14.