ASIC has banned Holly Marie Grofski, the director of Global Merces Funds Management Ltd (Global Merces), for a period of six months.
ASIC's banning order prohibits Ms Grofski from controlling, whether alone or together with others, any company or other entity that carries on a financial services business until 28 October 2021.
An ASIC surveillance found that Ms Grofski was involved in Global Merces' failure to comply with its Australian financial services (AFS) licence conditions. Global Merces failed to replace key persons named on its licence, to meet its and to meet notification requirements.
Global Merces also failed to lodge the compliance plan audit reports for its registered managed investment schemes and its own financial statements and auditors' reports for the 2018 and 2019 financial years.
Ms Grofski has the right to seek a review of ASIC's decision at the Administrative Appeals Tribunal.
The banning of Ms Grofski demonstrates that ASIC will take action against senior management of AFS licensees' if they fail to ensure that the licensee complies with its obligations under the Corporations Act.
Background
Global Merces held AFS licence no. 460883. It was the responsible entity of Global Merces Access Fund ARSN 604 201 952, Global Merces Equities Fund ARSN 604 220 662 and Covesta ARSN 625 625 803.
Following the voluntary appointment of an administrator to Global Merces on 13 January 2020, ASIC suspended Global Merces' licence on 21 January 2020 for a period of six months (20-012MR) and cancelled the licence on 20 July 2020 (20-181MR).
On 31 January 2020, the Federal Court ordered that Global Merces be wound up on just and equitable grounds, and appointed Mr Anthony Connelly and Michael Hill of McGrath Nicol as joint and several liquidators of the company (20-022MR).
On 21 May 2021, Ms Grofski, who was Global Merces' managing director before it was wound up, was charged with criminal breaches of the Corporations Act (21-109MR)
