Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Man charged with providing unlicensed financial services

A former director has been charged in relation to providing unlicensed financial services and credit activity after allegedly promoting and operating a scheme facilitating the illegal early release of superannuation.

News Miranda Brownlee 13 November 2015
— 1 minute read

ASIC said in a statement that Grant Thorsby Ross, former sole director of both Motabank (SA) Pty Ltd and Multimedia Marketing Pty Ltd, has been charged with one count of carrying on a financial services business without a licence by recommending to clients they dispose of their superannuation funds, which were then used to access loan funds.

Advertisement
Advertisement

Mr Ross has also been charged with three counts of engaging in a credit activity without a licence by performing the obligations of a credit provider and being a credit provider under a credit contract, said ASIC.

Between 1 July 2010 and 13 November 2012, Mr Ross placed newspaper advertisements in Victoria and South Australia flagging the availability of loans dependent upon future superannuation entitlements, the regulator said.

“When contacted by potential clients, Mr Ross allegedly promoted and operated a scheme facilitating the illegal early release of superannuation through the creation of Self-Managed Superannuation Funds (SMSFs),” the statement said.

ASIC also alleges that a 'round robin' scheme was operated by Mr Ross whereby his clients would transfer their superannuation funds into newly-created SMSFs.

“The SMSFs would loan funds to Mr Ross' company and then an amount, less a fee, was loaned by either Mr Ross's company or personally by Mr Ross back to the trustees of the SMSF in their personal capacity,” ASIC said.

ASIC stated that Mr Ross does not hold and has never been granted an Australian Financial Services Licence or an Australian Credit Licence.

The investigation first arose from an intelligence report lodged by the Australian Taxation Office which raised concerns about Mr Ross' conduct.

“Each charge in relation to carrying on a financial services business without a licence carries a maximum penalty of two years' imprisonment or a fine of 200 penalty units,” said ASIC.

“Each charge in relation to engaging in a credit activity without a licence carries a maximum penalty of two years imprisonment or a fine of 200 penalty units.”

Man charged with providing unlicensed financial services
image intro
accountantsdaily logo

 

Are you thinking of expanding your offering into SMSFs to grow your client base? Become a pro at SMSF fundamentals and make your clients bulletproof with the SMSF Foundations course. Learn directly from Aaron Dunn from Smarter SMSF as he deep-dives into the fundamentals you need to know to successfully undertake your work as an SMSF practitioner. Earn up to 21 CPD hours! Learn more

News