ASIC freezes assets of SMSF investment platform
A financial services licensee that provided an investment platform for SMSFs has had its funds and assets frozen.
ASIC obtained the interim orders from the Federal Court freezing the funds and assets of Australian Financial Services licensee Brite Advisors Pty Ltd (Brite).
ASIC’s application for these orders was made because ASIC is concerned that:
- the current financial position of Brite is unknown, as Brite has failed to lodge with ASIC its financial statements and auditors report for the financial year ended 30 June 2022; and
- the value of Brite’s funds under management has not been reported by any entity within the Brite Group in an audited balance sheet since December 2019.
Brite and its related entities operate in multiple countries including the UK, US, Hong Kong, and Australia providing advisory, pension administration and asset management services.
Brite offers an investment platform - Brite Platform - to self-invested personal pension providers, qualifying recognised overseas pension schemes, and self-managed superannuation funds.
Justice Katrina Banks-Smith ordered that Brite be restrained from, among other things:
- removing property from Australia,
- diminishing the value of any of its property,
- incurring new liabilities, and
- withdrawing or transferring any monies available in any account with any financial institution in Australia and elsewhere in which Brite has any legal or equitable interest.
ASIC sought the orders to help protect the beneficiaries of the assets under management by Brite, including the beneficiaries of those who have their pensions or superannuation funds invested on the Brite Platform.
The orders are in place until a further hearing before the Court, listed for 9 November 2023.
