The regulator has announced that five companies under the Benchmark Private Wealth banner have entered liquidation, with Michael McCann of Grant Thornton appointed as liquidator.
ASIC sought the ex parte orders following an investigation into Benchmark and its director Liam Young, which found concerns over the solvency of relevant companies.
A statement from the regulator also raises concerns about transactions entered into by Benchmark with entities linked to the collapsed property spruiker outfit Members Alliance Group under the directorship of Richard Marlborough.
The Benchmark Private Wealth website describes the company as a provider of “considered, professional advice” that aims to “help [consumers] make the best financial decisions”.
However, the website does not contain any information pertaining to an AFSL and explains that any “financial planning advice” provided to clients is provided by third-party referral partners.
Benchmark is a credit representative of Outsource Financial.
Neither Mr Young nor Mr Marlborough appear on the financial advisers register.
Where’s my rent Benchmark Private Wealth…
Outsource Financial should also be questioned. Did they do their due diligence when authorising Benchmark as a Credit Rep under their license? LIcensee’s need to be more careful of the practices and culture of their CR’s.
Not sure how that’s relevant. Outsource is an ACL not an AFSL.
Who was Benchmark’s AFSL? Oh, they didn’t have one. There’s your problem. Too much ASIC resource dedicated to stifling legitimate licensed advisers, not nearly enough resources dedicated to stopping cowboy unlicensed advice. ASIC thinks it’s more important to crack down on advisers who aren’t controlled or owned by institutions from calling themselves “independently owned”, than it is to stop people without an AFSL from providing “financial advice”.
OBVIOUSLY NOT!!!
I agree that a few bad apples ruin the whole cart – this will mean more regulation on a hugely regulated industry because these types of scammers can just continue to operate and phoenix into a new name every few years. people know what’s going on years before action is taken. Liam Young worked for ASIC then went and worked for Members Alliance and then director of his own scam company – no wonder he knew how to assist with the legal side of things, after working for ASIC he would know the ins and outs of dodging the regulator.
I think it has become pretty clear how to dodge the regulator. Don’t become licensed to give financial advice. If you do, ASIC will put all sorts of roadblocks and impediments in your way, then publicly slander you. Much easier to give financial advice as an accountant, real estate agent or mortgage broker, to whom ASIC turns a blind eye. Interesting to note that ASIC’s involvement in this situation related to insolvency, not unlicensed advice.
With so many gaps where questionable practices seem to be in play, how can a consumer trust that the adviser they are dealing with is part of the AFSL regime. Accountants, mortgage brokers, property spruikers all tout financial advice as an offering but via referral partners where they are not qualified or use vague disclaimers to a consumer not aware of the proper method of engaging with our industry, When this is exposed, we legitamate IFA’s are thrown under the bus, regulated even more, our name tarnished, while the practices continue unchecked. Associations…AFA FPA where the hell are you. Missing in action again….these items have never crossed your collective minds. Really ?