ifa understands that Genesis’ focus will be on restoring stability and increasing the security of Beacon subsidiaries.
A representative of Beacon declined to comment, citing confidentiality agreements.
Beacon, a subsidiary of Linchpin Capital Group, has previously been the subject of controversy. Linchpin Financial Group, which owned Beacon, was also the subject of controversy after ASIC alleged money was diverted from its Investment Income Opportunity Fund (IIOF) to directors for personal loans. Linchpin has since been liquidated.
ifa understands that under the deal with Genesis, benefits for authorised representatives will include the retention of existing terms for 12 months and options of 24 or 36 months, subject to associated commitment; open architecture, with no mandating; and continuity of income stream.
They will also be provided with transition co-ordination and support where required.
“We would not be standing upon this threshold without the extraordinary loyalty of our advisers, mortgage brokers and preferred partners,” managing director Peter Daly wrote in a letter to Beacon advisers.
“I should like to thank you for your resilience, perseverance and trust, which I highly value and was most humbling, but equally demonstrated the strength of your resolve and underpinned the value of the group.”
Genesis Financial Inc represents financial products, packages, fintech services and originates mortgages, contracts and non-conforming commercial loans. It is based in Portland, Oregon.
The acquisition of Beacon subsidiaries is the company’s first step into Australian markets.
Correction: this article previously stated that the IIOF was owned by Beacon. That was incorrect. The IIOF was owned by Linchpin Financial Group, which was also the parent company of Beacon.
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Not a penny stock… idiot. Learn to count
How is Peter Daly allowed to be an RM?
haha. Genesis Financial Inc is a penny stock in the US. it’s share price dropped 57% overnight. Sounds like Beacon’s been sold off to some loan sharks….
‘they had been under investigation by ASIC for over a year following unlawful activity’ – The most important part of this story. What of the client’s monies? no mention of whether they have been paid back? This group had REAL client detriment, and Daly continues as MD? Whereas Terry McMaster, gets his Dover AFSL shut down over a Client Document, with NO client detriment. There must be accountability and consequences for Directors, RMs and Advisers who rightly deserve it, and fair treatment for those that don’t. It would be interesting to read how Genesis are selling this to their client base in US, perhaps ‘First acquisition in Oz with a group soaked in unlawful activity’….good luck Genesis
No Money yet!! I’m still waiting 🙁
Oh dear !
Ahh maybe I am looking at the wrong Genesis Financial Inc but a quick google shows that Genesis is down 50+% in the OTC Markets. Company has 4 employees, works out of a Suite address in Vegas and is incorporated in the financial “hub” of Wyoming.
https://www.marketwatch.com/investing/stock/gfnl/insiders?pid=60882086
What do they do?
Genesis Financial, Inc. engages in buying and reselling financed real estate loans, mortgages, and contracts. Its portfolio includes residential and commercial properties. The company was founded by Michael A. Kirk on January 24, 2002 and is headquartered in Post Falls, ID.
What I think has happened is, Beacon Advisers, who borrowed money from the parent to acquire their customer books, have had their loans on sold to someone else – and it is packaged as an acquisition by Genesis?
I wonder why IFA didn’t do this research?