Two directors of Sheffield Insurance have been fined $15,000 over their roles in the WA brokerage failing to lodge financial statements and auditors’ reports with the corporate regulator for five years.

Phillip Bird of Alexander Heights and Daniel Holmes of Beechboro each pleaded guilty to two charges of aiding, abetting, counselling or procuring Sheffield to commit an offence.

The offences related to the failure to lodge profit and loss statements and balance sheets (financial statements) and the failure to lodge auditors’ reports.

The Australian Securities and Investments Commission alleged Mr Bird and Mr Holmes failed to ensure the business lodged the documents for each financial year from 2019 to 2023 inclusive, and were aware of the obligation to do so.

As the holder of an Australian financial services licence, Sheffield is required to lodge financial statements with ASIC within three months of the end of each financial year.

“It is important that AFS licensees lodge timely reports ... so ASIC can monitor their financial health and make sure they meet their financial obligations under law,” the regulator’s deputy chair Sarah Court said.

“Financial reporting misconduct is now an enforcement priority for ASIC and we will not hesitate to take action for reporting failures. Today’s decision show that directors can also face individual criminal consequences over their business’ reporting failures.”

Mr Bird and Mr Holmes were also each ordered to pay court costs of $268.