This article is from the Australian Property Journal archive
THE Australian Securities and Investments Commission has launched legal action against property promoter, Park Trent Properties Group.
The corporate regulator launched proceedings in the Supreme Court of New South Wales seeking interim and final orders to Park Trent from carrying on an unlicensed financial services business.
Park Trent’s business promotes the use of self-managed superannuation funds (SMSFs) to purchase investment property and it is understood that Park Trent has advised at least 500 members 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.
ASIC alleges and is seeking declarations that Park Trent is unlawfully carrying on a financial services business without an Australian financial services (AFS) licence.
ASIC contends that the conduct that is the subject of this action required Park Trent to have an AFS licence or be an authorised representative of an AFS licensee.
The regulator is also 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.
The first hearing of the matter is listed for 26 November 2014.
ASIC Commissioner Greg Tanzer said 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.
“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,” Tanzer said.
Australian Property Journal
