ASIC Charges Perth Financial Directors Over Regulatory Breach, Highlighting Compliance Risks Across Licensed Firms

The Australian Securities and Investments Commission (ASIC) has initiated criminal proceedings against two directors of a Perth-based financial services company, signalling a firm reminder to the industry that regulatory obligations around financial reporting remain non-negotiable for all Australian Financial Services (AFS) licence holders.

Phillip Bird of Alexander Heights and Daniel Holmes of Beechboro face charges for allegedly aiding and abetting Sheffield Insurance Pty Ltd’s failure to lodge mandatory financial statements and auditor reports for five consecutive financial years, from 2019 through 2024. Both directors appeared before the Perth Magistrates Court on 10 October 2025, charged under sections 989B(2) and 989B(3) of the Corporations Act.

Despite holding an AFS licence, Sheffield Insurance is accused of failing to submit essential profit and loss statements and balance sheets within the required three-month period following each financial year-end. These filings are crucial to maintaining market transparency, demonstrating solvency, and sustaining public and investor confidence in licensed financial entities.

The case has now been adjourned to 21 November 2025, following a request by legal representatives. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions, acting on ASIC’s referral.

While no allegations of client fund misuse or fraud have been brought forward at this stage, the persistent non-compliance over half a decade raises serious concerns about governance standards and internal accountability within licensed firms. ASIC’s decision to pursue criminal charges reflects a broader regulatory stance: financial misconduct is not limited to misappropriation or deception—failure to uphold basic statutory duties can be treated with equal severity.

This enforcement action sends a clear warning across the financial services sector, particularly within insurance, brokerage, and advisory firms operating under AFS licences. ASIC has repeatedly stated that financial reporting is not an administrative formality but a cornerstone of regulatory supervision. Unfiled accounts obscure a firm’s financial position, hinder oversight, and potentially conceal deeper structural risks.

For legitimate financial firms, the message is unambiguous: operational legitimacy must be matched by reporting discipline. Even without client harm, neglecting statutory filings can trigger criminal liability. As ASIC pursues this case, industry participants are reminded that the failure to demonstrate financial integrity is itself treated as a breach of public trust.