General in Australia

Key dates

2021-09-01

ASIC's investigation into Edwards and associated entities commenced; the publication gives only September 2021 and does not specify a day.

2022-12-13

ASIC executed search warrants at Edwards's business premises and seized materials.

2025-01-22

The remaining court proceeding brought by Edwards that had delayed ASIC's review of seized materials was dismissed by consent.

2025-09-12

ASIC banned Edwards for 10 years under sections 920A and 920B of the Corporations Act 2001 from providing financial services, controlling an entity carrying on a financial services business, or performing functions involved in such a business.

2026-03-25

ASIC commenced NSW Supreme Court winding-up proceedings against the 12 companies and sought appointment of provisional liquidators.

2026-05-28

ASIC's disqualification of Edwards as a self-managed superannuation fund auditor took effect.

2026-08-19

ASIC's interlocutory application for appointment of provisional liquidators was heard before Justice Nixon.

2026-08-21

The NSW Supreme Court appointed Kathryn Evans and Vaughan Strawbridge of FTI Consulting as provisional liquidators of the 12 companies.

Suggested considerations

• Firms with exposure to the 12 companies should consider reviewing receivables, investments, security interests, guarantees, trust relationships and outstanding transactions, and preserving relevant records for engagement with the provisional liquidators.
• Investor-facing firms should consider identifying clients or funds exposed to the companies, suspending any further investor subscriptions or transfers involving the affected entities where legally and operationally appropriate, and assessing communications and complaint-handling requirements.
• Financial services licensees and professional firms that dealt with Edwards or the companies should consider checking the scope of their engagements, referral arrangements, client-money or custody controls, representations made to investors, and potential conflicts or undisclosed related-party transactions.
• Compliance teams may wish to verify that no person acting for the affected companies is relying on Edwards to provide financial services, control a financial services business or perform a function involved in carrying on such a business, given the 10-year prohibition under sections 920A and 920B of the Corporations Act 2001.
• Relevant firms should consider monitoring the NSW Supreme Court proceeding and the provisional liquidators' creditor and investor information portal ahead of the 2 November 2026 directions hearing.
• Persons holding potentially relevant information may wish to consider providing it to ASIC at Edwards.investigation@asic.gov.au and preserving documents relevant to the ongoing investigation.

What changed

The directors of the 12 companies no longer control their affairs to the extent provided by the Court's orders; the provisional liquidators are responsible for investigating and reporting on the companies' assets, liabilities, asset recoverability, solvency, likely creditor returns, suspected contraventions of the Corporations Act 2001 or ASIC Act 2001, and transactions requiring further investigation.

Key dates

2026-03-01

ASIC surveillance period began

2026-06-30

ASIC surveillance period ended

Suggested considerations

• Compliance teams may wish to review whether target market determinations are narrowly drafted and contain specific reasoning on how the product fits likely objectives, financial situations, and needs.
• Firms may wish to test whether onboarding questionnaires are genuinely tailored to client circumstances and whether repeated or unlimited retakes create a weak suitability gate.
• Firms may wish to assess whether disclosures clearly explain leverage, time decay, settlement, ownership rights, custody arrangements, transferability, and all material fees or costs.
• Compliance teams may wish to review sign-up incentives, fee-free trading claims, and reward promotions to confirm they do not obscure product risk or encourage impulsive trading.
• Firms may wish to verify that product governance and distribution controls continue after onboarding through monitoring, escalation, and remediation processes.
• Compliance teams may wish to consider whether retail distribution of short-dated ETOs and futures should be restricted or more tightly segmented given ASIC’s statement that these products are unlikely to suit many retail investors.

What changed

This is not a new binding rule; it is a supervisory publication that signals ASIC’s expectations for firms offering complex or high-risk products to retail investors. ASIC says entities should ensure target market determinations are sufficiently specific, onboarding questions are tailored to client circumstances, and disclosures clearly explain the risks, costs, ownership structures, and transfer implications associated with products such as fractional shares, ETOs, and futures.

Key dates

2020-10-20

McPherson’s issued earnings guidance to the market forecasting profit growth, supported by Dr LeWinn purchasing forecasts.

2020-11-12

Court found McPherson’s had sufficient information that sales and purchasing forecasts were materially below expectations and corrective disclosure was required.

2020-11-30

End of the period in which McPherson’s failed to correct the market.

2020-12-01

McPherson’s downgraded and withdrew its earnings guidance; the share price fell 34.5%.

2022-12-09

ASIC commenced civil penalty proceedings in the Federal Court against McPherson’s and Mr McAllister.

Suggested considerations

• Compliance teams may wish to review escalation processes for sales data, forecast changes, and other information that could undermine published earnings guidance.
• Firms may wish to test whether internal triggers require reassessment of market disclosures when trading updates, channel data, or event results materially diverge from prior assumptions.
• Directors and officers may wish to confirm who is responsible for approving market announcements and whether they have sufficient visibility over information that could make prior statements misleading.
• Listed entities may wish to reassess procedures for correcting or withdrawing guidance promptly after new information emerges, especially where prior statements were repeated in cleansing notices or AGM materials.

What changed

This is an enforcement outcome, not a new rule: the Court held that McPherson’s had a duty to correct the market once it learned, by 2020-11-12, that Dr LeWinn purchasing forecasts and sales results were significantly below expectations and that the October 2020 profit forecast no longer had a reasonable basis. The Court found the company breached continuous disclosure obligations and misled investors by failing to disclose the revised forecasts and by not withdrawing the October 2020 profit forecast between 2020-11-12 and 2020-11-30.