ASIC has banned Neil Andrew Cato from involvement in a financial services business and engaging in credit activities for five years.
ASIC found Mr Cato had been linked to a refusal or failure to give effect to two Australian Financial Complaints Authority (AFCA) determinations. On 27 February 2024, Mr Cato had also become insolvent within the meaning of the National Consumer Credit Protection Act 2009 (Cth).
In banning Mr Cato for five years, ASIC prohibits Mr Cato from:
- engaging in any credit activities
- controlling, whether alone or with one or more other entities, another person who engages in credit activities
- performing any function involved in the engaging in of credit activities, including as an officer
- providing any financial services
- performing any function involved in the carrying on of a financial services business, including as an officer of an entity carrying on that business, and
- controlling an entity that carries on a financial services business.
The banning will be in effect until 27 February 2031.
Mr Cato has the right to appeal to the Administrative Review Tribunal for a review of ASIC's decision.
Background
Mr Neil Cato was a credit and financial services provider since 13 May 2010.
Sections 80 and 81 of the National Consumer Credit Protection Act 2009 (Cth) gives ASIC the power to make orders banning a person from participating in the credit industry if the person has refused or failed to give effect to AFCA determinations and is declared insolvent.
Sections 920A and 920B of Corporations Act 2001(Cth) gives ASIC the power to make orders banning a person from participating in the financial services industry if the person has refused or failed to give effect to AFCA determinations and is declared insolvent.
