iscoverAn adviser who spruiked SMSF establishments to his clients to facilitate the purchase of investment properties has been restrained by a court from carrying on a financial services business.
SMSF, investment property spruiker faces court order
15 February 2019
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3 minute read
The Supreme Court of Queensland has made orders restraining Advanced Wealth Financial Services Pty Ltd and Richard Gardner from carrying on a financial services business.
Mr Gardner and Advanced Wealth had advised clients to set up SMSFs to facilitate the purchase of investment properties in relation to which Mr Gardner received substantial commissions.
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Between 29 April 2016 and 9 November 2018, both Advanced Wealth and Mr Gardner contravened section 911A of the Corporations Act 2001 (Corporations Act) by providing financial advice to clients to set up SMSFs to facilitate the purchase of investment properties in Australia without holding an AFSL.
ASIC commenced legal proceedings late last year, alleging that Mr Gardner had 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.
The court has ordered that Mr Gardner and Advanced Wealth pay ASIC’s costs of the application, fixed at $10,000.
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