The Court found that Dr Roger Munro breached the corporations act by carrying on a financial services business in Australia without holding an AFSL.
ASIC alleged that since August 2011, Roger Munro with the assistance of Kathleen Munro operated an unlicensed financial services business in Australia and raised from than $1.5m from friends, family and investors for trading purposes.
ASIC said during the trial of the proceeding, three investors gave evidence that:
- Munro approached the investors about investing in a trading group, which he subsequently called “Tradestation Futures”.
- the investors paid money to Munro as investments in Tradestation.
- some investors signed an agreement with Munro relating to their investment in Tradestation.
- the investors received quarterly returns from Munro for a period.
- each investor received a number of quarterly reports from Munro about their investments, and
- each investor is still owed significant sums by Munro, including one investor who is owed $500,000.
The Supreme Court found the arrangement between investors and Munro was one by which Munro was seeking to trade on behalf of investors using pooled funds. The Court stated that Munro, "has sought and obtained funds from investors within Australia who have paid him large sums of money for trading in international markets in circumstances where he does not hold an AFSL. In such circumstances the public interest and the marking of the Court’s disapproval of such conduct makes it appropriate to grant some form of declaratory relief".
The Supreme Court of Queensland has permanently restrained a man from operating without an AFSL.