According to an announcement released this morning, ASIC has commenced proceedings in the Supreme Court of New South Wales seeking interim and final orders to prevent property investment promoter, Park Trent Properties Group Pty Ltd from carrying on an unlicensed financial services business.
Park Trent’s business promotes the use of SMSFs to purchase investment property, ASIC stated.
ASIC alleges and is seeking declarations that Park Trent is unlawfully carrying on a financial services business without an AFSL.
ASIC stated it understands that Park Trent has advised at least 500 members of the public to establish and switch funds into an SMSF which are then used to purchase investment properties that are owned or promoted by Park Trent companies.
In addition, ASIC is seeking orders requiring Park Trent to notify current and former clients about the proceeding and to post a notice regarding ASIC’s proceeding on its website.
“Collectively, Australians hold over $1.85 trillion worth of assets in superannuation funds, with $557 billion held in SMSFs. It is important when making decisions regarding superannuation to consider obtaining appropriate advice from an authorised financial adviser,” said ASIC commissioner Greg Tanzer.
“Dealing with an authorised adviser affords specific protections under the law, such as acting in the best interests of clients, a duty to avoid conflicts of interest and providing access to dispute resolution schemes.”
The first hearing of the matter is listed for 26 November 2014.
ASIC bless their cotton socks has asked Park Trent to advise their clients of the proceedings. Yet these clients will still be stuck with the costs of changing, the fees charged by Trent Park and also stuck with the properties that they have purchased and are managed by Trent Park.
So how does this help the clients that have been ill advised if they now think they have been mislead. Where are the penalties and fines and restitution to clients
If Trent Park had been a financial planning firm what would ASIC have done?
I bet it would not have been this softly softly.
We will just have to wait and see if the ASIC tiger gets anymore aggressive on this one.