The Full Federal Court has dismissed an appeal by Peter Daly, a former director of Linchpin Capital Group Ltd (in liquidation).
The matter, heard before Justice O’Callaghan, Justice McElwaine and Justice Jackman upheld the previous Federal Court ruling that Mr Daly:
was an officer of a responsible entity of a registered managed investment scheme,
breached his duties as an officer of a responsible entity of a registered managed investment scheme and did not act in the best interests of members, and
pay a $150,000 penalty and be banned from managing a corporation for five years.
ASIC Deputy Chair Sarah Court said, ‘Today’s outcome should act as a reminder to directors of responsible entities that operate managed investment schemes that they must act in the best interests of members.’
The Court ordered that the appeal should be dismissed. In his judgment, Justice Jackman said the penalty and period of disqualification ordered by the primary judge were well within the range of reasonable decisions, and one could not infer any misapplication of principle from that outcome. Justices O’Callaghan and McElwaine agreed.
Mr Daly filed an appeal to the Full Federal Court in February 2024 seeking that the orders made by the trial judge be set aside, or that the Full Federal Court exercise its discretion to impose a lesser disqualification of three years and a pecuniary penalty amount of $40,000.