ASIC cancels company AFSL, bans director

The regulator said it has also permanently banned the company's director and responsible manager, Robert Lachlan Semple.

According to ASIC, Chronos Capital breached financial services laws by representing on its website that it was authorised to provide MDA services to clients in circumstances within which it was not permitted to do so.

ASIC further said Chronos Capital "breached its licence conditions" by providing MDA services to three clients, and breached financial services laws by "misrepresenting an offer to clients as an investment in a debenture when the offer was in fact an unsecured loan".

The regulator found that Mr Semple – who has been incarcerated since 3 October 2013 and will remain in prison until at least 3 April 2016 – was involved in breaches of financial services laws by Chronos and was "not of good fame or character".

Due to Mr Semple's incarceration, Chronos also failed to comply with its obligations to maintain the competence to provide the financial services covered by its AFSL, a statement from ASIC said.

"[He also failed to] do all things necessary to ensure that the financial services covered by its licence were provided honestly, efficiently and fairly," the statement said.

Chronos Capital and Mr Semple have a right to appeal to the Administrative Appeals Tribunal for review of ASIC's decision.