Key ASIC figure steps aside from Nuix investigation as corporate regulator turns up heat

ASIC commissioner Cathie Armour has stepped aside from the Nuix probe and the regulator has revealed a senior investigator joined the troubled tech company.

ASIC Commissioner Cathie Armour, seen in 2017, had in a previous role at Macquarie Capital and Macquarie Group worked alongside Dan Phillips, who sits on the board of Nuix, now under investigation. Ms Armour has stepped aside from involvement in the prospectus inquiry. Picture: Hollie Adams/The Australian

A senior figure at the corporate regulator has stood aside from her role in the investigation of alleged wrongdoing by key figures at troubled tech firm Nuix.

The Australian Securities and Investments Commission revealed in a response to Labor senator Deb O’Neil that Commissioner Cathie Armour had recused herself “from any involvement in these matters so as to enable ASIC’s work to continue without disruption”.

The move came after it was brought to light that Ms Armour, in her previous role at Macquarie Capital and Macquarie Group, had worked alongside Dan Phillips, who sits on Nuix’s board.

ASIC is currently investigating conduct that occurred at Nuix from 2018 to 2020, the period in which Dan Phillips served as chair of the company’s board.

Prior to listing, Macquarie owned almost 66 per cent of Nuix.

However, Ms Armour declined to respond in detail to Senator O’Neil’s questions, noting “providing an answer to the question may result in a breach of Commissioner Armour’s duty, as a former employee, to Macquarie to maintain its confidentiality and legal professional privilege, in circumstances where Macquarie has not provided a waiver”.

“As referred to in ASIC chair [Joe] Longo’s opening statement to the committee on 18 June 2021, Commissioner Armour has not been involved in ASIC’s review of the Nuix prospectus, does not hold any Macquarie shares or otherwise have a financial interest in Macquarie”.

The move was revealed as the federal parliamentary joint committee on corporations and financial services turned up the heat on the corporate regulator for its oversight of Nuix’s market float, ahead of a hearing on Wednesday.

ASIC is currently investigating whether Nuix’s IPO prospectus lodged with the regulator and the ASX “contained false or misleading information”.

This is in addition to investigations into Nuix’s former CFO Stephen Doyle and his brother Ross Doyle.

The two men are alleged to have engaged in insider trading using market-sensitive knowledge regarding Nuix’s finances.

The inquiries come as ASIC informed the senator that it became aware in February of this year that senior supervisory officer Oliver Harvey would be joining Nuix.

Nuix floated on the ASX in December 2020 before its share price crashed 32.5 per cent on February 25.

“Mr Harvey’s last day of employment with ASIC was April 15, 2021,” the corporate regulator said in its response.

“Mr Harvey was not involved in ASIC’s review of the Nuix prospectus or its consideration of the complaint letters from Aperion Law.”

ASIC also said a review of its technology systems showed “that between November 2020 to April 2021 Mr Harvey did not access documents relating to Nuix”.

In April 2021 ASIC imposed “additional IT controls to actively restrict access to Nuix-related matters”.

Nuix shares were at $2.81 late on Friday, down from a high of $11.16 in January.