ASIC has commenced proceedings in the Supreme Court of Queensland against Richard Gardner, a credit representative and former financial adviser, and Advanced Wealth Financial Services Pty Ltd.
The Corporate Regulator alleges that Mr Gardner and Advanced Wealth Financial Services were providing financial services with no license or authorisation.
Following an investigation, ASIC alleges that Mr Gardner recommended clients establish an SMSF to facilitate the purchase of a newly constructed investment property, recommended specific properties for development to clients, recommended specific developers or builders to construct the investment property and received substantial commissions from the builder or developer used for the construction of the investment property.
Mr Gardner and Advanced Wealth Financial Services are not licensed nor authorised to provide financial services, only credit services.
ASIC is seeking final orders to restrain Mr Gardner and Advanced Wealth Financial Services from carrying on a financial services business unless authorised.
The matter will be heard in the Supreme Court in Brisbane on 12 February 2019.
ASIC said its investigation is continuing.
The issue that will come up and should concern ASIC is what elements of advice where financial services and which were not. For example if a client has a SMSF then is discussing property with the client the provision of a financial service. Property is specifically exempted from the definition of a financial product per Note 2 to section 763B of the Corporations Act 2001: Note 2: Examples of actions that do not constitute making a financial investment under this subsection are:
(a) a person purchasing real property or bullion (while the property or bullion may generate a return for the person, it is not a return generated by the use of the purchase money by another person)
Errr, the article refers to him as a “Former” Financial Adviser……
If he’s not licensed, then he’s not a financial adviser. Stop calling him one.
Calm down “Authorised Adviser”, I think the article referred to his as a “former financial adviser”
Tip of the iceberg. Watch this space.