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SMSF property spruiker cops court orders
The Supreme Court of Queensland has made orders against an unlicensed financial services business that advised clients to set up SMSFs to facilitate the purchase of investment properties.
Following an ASIC investigation, 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.
In a public statement, ASIC said 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.
According to ASIC Mr Gardner and Advanced Wealth are not currently licensed or authorised to provide financial services.
ASIC commenced proceedings in the Supreme Court of Queensland against Advanced Wealth and Mr Gardner on 14 December last year.
On 12 February 2019, the court ordered that Mr Gardner and Advanced Wealth pay ASIC’s costs of the application, fixed at $10,000.
The Court declared that between 29 April 2016 and 9 November 2018, both Advanced Wealth and Mr Gardner contravened section 911A of the Corporations Act 2001 by providing financial advice to clients to set up SMSFs to facilitate the purchase of investment properties in Australia without holding an AFSL.
It also declared that Mr Gardner, as the sole director and responsible decision-maker for Advanced Wealth, was knowingly concerned in Advanced Wealth’s contravention of section 911A of the Corporations Act between 29 April 2016 and 9 November 2018.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
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