In a statement, ASIC announced it had commenced proceedings against Linchpin Capital Group (the parent company of non-bank licensees Beacon Group and Libertas Financial Planning) and Endeavour Securities over two managed investment schemes operated by both businesses.
Both investment schemes listed by ASIC are called “Investport Income Opportunity Fund”, ASIC said.
ASIC said an investigation found Linchpin was operating the scheme “without holding an Australian Financial Services Licence as required by the Corporations Act” and used investor funds for its own purposes “without disclosing this use to investors”.
Additionally, the regulator said Endeavour Securities had entered into “related party transactions in contravention of the Corporations Act” and failed to properly disclose those transactions to investors, and that “monies invested in the schemes managed by Linchpin and Endeavour have been misapplied or misappropriated by Linchpin and Endeavour.”
ASIC intends to restrain the businesses from operating the schemes, prevent the businesses from “dealing with assets or investor funds”, appoint receivers and wind up both schemes, and “obtain declarations that Linchpin and Endeavour have acted in contravention of the Corporations Act.”
The issue is set to be heard in the Federal Court in Brisbane on 24 July, and ASIC’s investigation is ongoing.
Last month, ifa reported that Linchpin Capital intended to list on the ASX following a merger with fund manager AD Capital.
What happened to the advisers income under AFS ? If Beacon is in administration does that mean advisers income is suspended to pay the bills of the AFSL, or are they protected ?
Anyone else believe a Dover type scenario is going to play out here?
Worse I think….
Actually Peter Daly is listed as the Chairman of AIOFP and the Managing Director of Beacon
Yep together the Beacon Group has about 300 advisers across TFLG (The Financial Link Group), Libertas Advisers and RIAA. They also have mortgage brokers and property. They are the 18th largest adviser AFSL and have near the worst management and adviser compliance I have seen. I am surprised their advisers and AFSL management in this regard is also not called to question. This group is a clear reason why we needed a royal commission,
And you would know?
Yes I would
If you are aware of valid and supportable issues maybe you could share them with IFA? If not, it sounds like baseless slander.
Agree. Everybody knows this. Perhaps justice will finally be done. Does anyone remember the AFS debarcle the key management team were also involved in? Leopard and spots as they say.
[quote=drew]doesn’t this group own a few dealer groups?- correct me if i am wrong please?[/quote]
Yes. It even refers to licensees (dealer groups) in the article.
Yes Drew. I think there is a connection. According to various web sites Peter Daly is a director of Linchpin, Beacon Group and AIOFP.
doesn’t this group own a few dealer groups?- correct me if i am wrong please?