In this edition, we discuss the Australian Securities and Investments Commission’s (ASIC) decision to permanently ban a former New South Wales (NSW) financial adviser, following a conviction of dishonest conduct contravening the Corporations Act 2001 (Cth) (Corporations Act). We examine the decision of the High Court of Australia to grant special leave to appeal in a cryptocurrency case and how this may settle the uncertainty around cryptocurrency property classification. We also examine and the penalties imposed on Indian Ocean International Shipping and Service Company Ltd (Indian Ocean) in the Federal Court for breach of the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA).
In Over the Horizon, we consider the growing trend of Canadian natural resources companies completing initial public offerings (IPOs) on the Australian Securities Exchange (ASX) and what this means for the IPO market in Australia.
Regulatory
ASIC permanently bans former NSW financial adviser for dishonest conduct
On 22 January 2026, ASIC permanently banned former NSW financial adviser David Mario Valvo from providing financial services following his conviction for dishonest conduct contrary to section 1041G(1) of the Corporations Act. In July 2023, ASIC commenced urgent proceedings in the Federal Court against Mr Valvo and his related company, Your Financial Freedom Pty Ltd, investigating fees charged to clients’ superannuation for financial services provided between 1 January 2015 and 21 September 2021. In separate criminal proceedings on 12 February 2025, Mr Valvo pleaded guilty in the Downing Centre District Court and was sentenced to three years’ imprisonment for contravening section 1041G of the Corporations Act in relation to 12 clients. The court found that Mr Valvo had dishonestly withdrawn $110,000 from his clients’ superannuation funds by submitting false adviser fee withdrawal forms. His sentence was suspended on conditions, including payment of a $20,000 pecuniary penalty and making reparations to the affected superannuation funds. Following the conviction, ASIC banned Valvo from providing any financial services, controlling an entity that carries on a financial services business and performing any function involved in the operation of such a business. This outcome serves as a reminder of ASIC’s enforcement priorities and its power under section 920A(1) of the Corporations Act to permanently ban a person from providing financial services in specified circumstances, including following certain dishonesty-related convictions. Directors should note ASIC’s ongoing focus on misconduct involving misuse of client funds when carrying on financial services business.
Legal
High Court takes on Bitcoin case
On 5 February 2026, the High Court granted special leave to Tasmanian cryptocurrency entrepreneur Adam Poulton to appeal an order of $50,000 in damages against him. In 2013, Mr Poulton agreed to invest $10,000 in Bitcoin through his company, Get Paid in Bitcoin Pty Ltd on behalf of Jeff Conrad pursuant to their arrangement. However, Mr Poulton retained 10% of the Bitcoin as a claimed fee for services and subsequently refused to return the balance upon demand. Mr Conrad commenced proceedings against Mr Poulton in the Hobart Magistrates Court alleging conversion and detinue, claiming that retention of the service fee amounted to wrongful detention of his property. The Magistrate found that while a fee for service was payable, Mr Poulton was not entitled to claim the fee from a portion of the Bitcoin he had acquired on behalf of Mr Conrad. Mr Poulton was ordered to pay $50,000 in damages (including exemplary damages) with an offset of $1,500 for a reasonable fee. Mr Poulton appealed to the Supreme Court of Tasmania (dismissed in February 2025), and then to the Full Court of the Supreme Court of Tasmania, which heard the matter on 1 July 2025 and dismissed the appeal on 19 September 2025. The High Court granting special leave to hear the appeal is a significant development in the unsettled legal landscape regarding the classification of cryptocurrency as a class of property capable of immediate possession.
Penalties ordered by the Federal Court of Australia for foreign investors’ non-compliance
On 30 January 2026, the Federal Court of Australia awarded a combined $14 million in penalties in the first case brought by the Treasurer under the FATA since the Act was introduced. In 2023, Indian Ocean (as an affiliate of a foreign company) acquired shares in Australian critical minerals company Northern Minerals Limited (ASX: NTU) (Northern Minerals). In June 2024, the Treasurer ordered Indian Ocean to dispose of all its shares in Northern Minerals under section 69 of the FATA (Disposal Orders), on the basis that he was satisfied the result of Indian Ocean’s actions of acquiring the shares was contrary to national security. In July 2024, Indian Ocean contravened section 7 of the Disposal Orders and section 89(1) of the FATA by disposing all its shares in Northern Minerals to Ms Jing Tian, the sole director and shareholder of Indian Ocean. The Treasurer commenced proceedings in the Federal Court of Australia seeking a declaration that the transfer of shares to Ms Tian breached the Disposal Orders and the FATA. The Federal Court of Australia declared that Ms Tian was “knowingly concerned in Indian Ocean’s contravention” of the Disposal Orders, and by extension the FATA, and ordered her to pay $4 million in pecuniary penalties (in addition to the pecuniary penalty of $10 million payable by Indian Ocean for its contraventions). This case serves as a reminder that, against a background of increasing geopolitical sensitivity, the critical minerals industry remains a significant focus within Treasury’s broader foreign investment framework.
Over the Horizon
Canadian natural resources companies are increasingly turning to the ASX
In 2025 alone, eight Canadian companies completed ASX-listings (including dual-listings alongside the TSX and TSX-V), with all seeing positive returns. According to BDO Australia the trend is driven by regulatory transparency and the sophistication of Australia’s capital markets. International investors familiar with Australia’s resources lifecycle are increasingly taking advantage of Australia’s large superannuation pool, active retail investors and resource-focused institutions. ASX listings also provide proximity to the Asia-Pacific market, enhancing visibility with downstream partners, end users and strategic investors, strengthening international investors’ global positioning as supply chains are becoming more regionalised. These advantages are reflected in the ASX becoming established as a preferred offshore listing market for mining and exploration companies assessing their capital markets options. This trend is expected to continue into 2026, with the IPO market picking up alongside increased participation from international investors. For directors considering an IPO, prioritise listing readiness, an ASX-focused equity story, broker coverage and preparedness for continuous disclosure and investor relations.