Jeff Bailey, the MD of failed Perth authorised representative company Winley Financial Services, has been permanently banned from the financial services industry.

Winley collapsed last year after Mr Bailey’s co-directors, Steve and Chandanie Godwin, fled Australia with proceeds from the company’s trust account, which is understood to have contained more than $7 million.

The Australian Securities and Investments Commission (ASIC) says Mr Bailey was a director of Winley from July 2009 to April 18 last year, “and was the key person and responsible manager for Winley” between February 9 2010 and May 19 last year.

It says Mr Bailey was involved in breaches of legal requirements by Winley, including failure to lodge audited financial accounts for 2013/14 and 2014/15 within the required timeframe, and failure to lodge a breach report within the appropriate timeframe.

ASIC also found Mr Bailey was “an integral factor in Winley failing to do all things necessary to ensure the financial services covered by its licence were provided efficiently, honestly and fairly; comply with the conditions of the licence; and have adequate risk management systems”.

The story of the Winley collapse and the Godwins’ theft of the trust account money was first revealed in April last year by insuranceNEWS.com.au, which published the information before some of Winley’s major insurer creditors were even aware the company was in trouble.

Subsequent reports by insuranceNEWS.com.au included allegations that the Godwins removed money from the trust account in 2015 but Winley continued to pay commissions to its authorised representatives into early last year.