ASIC bans director and AR over ‘misappropriation’ of client funds

The Australian Securities and Investments Commission (ASIC) has announced it has made two orders permanently banning Melbourne-based former director Christopher David Nairn from the financial services and credit industries.

Nairn allegedly falsified numerous documents by forging his clients’ signatures, which enabled him to misappropriate more than $650,000 in client funds, the regulator said.

ASIC found Nairn’s conduct was illustrative of a person who “lacks the honesty, integrity, professionalism and trustworthiness to participate in the financial services and credit industries”.

As a result, it has permanently banned Nairn from providing any service or performing any function associated with the financial services and credit industries as well as controlling an entity that carries on a financial services business or a person who engages in credit activities.

ASIC added that Nairn opted not to attend a hearing or make written submissions and that the banning took effect on 22 May 2024.

At the time of his misconduct, Nairn was a director of Equus Private Wealth and an authorised representative under Capstone Financial Planning’s Australian Financial Services licence. Between July 2011 and December 2014, Nairn was also a credit representative of Capstone.

ASIC noted that Capstone is in the process of remediating impacted consumers.

Nairn’s banning has been recorded on ASIC’s banned and disqualified register and he has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.