Emails seen by ifa show that Linchpin Capital intends to dispute ASIC allegations made on Monday, 2 July that it is running two managed investment schemes without being appropriately licensed to do so.
ASIC is seeking court orders to wind up both of the investment schemes as well as Linchpin Capital and Endeavour Securities (which is also involved in the running of the schemes).
The matter is set to be heard in the Federal Court in Brisbane on 24 July.
Internal emails from Beacon Group managing director Peter Daly show Linchpin management were “shocked” by ASIC’s announcement, which came only one hour after the business received notice of the action.
“It is exceptionally disappointing and does not reflect our past professional experience in dealing with ASIC, which was measured and collaborative,” said Mr Daly.
According to the emails, ASIC notified Linchpin that it wished to commence a “routine surveillance” on 26 October 2017. This was followed by the issuance of an official notification about the ASIC surveillance to Linchpin authorised representatives, staff and related parties.
Linchpin’s directors were informed of the ASIC notice of court action at 3pm on Monday, 2 July, and the ASIC media release was issued at “approximately 4pm”, said Mr Daly.
“Having made considerable effort to provide ASIC with everything they demanded we don’t understand why they have taken this approach,” said Mr Daly in the email to advisers.
“Solicitors have been appointed whom are working through the detail and we will provide you with a summary of their feedback once that is available,” he said.
“Unfortunately we are now subject to trial by media and regrettably guilty until proven innocent. Over the coming days and weeks we will be tested and I encourage you to maintain your support while we fight the allegations.”
Last month, ifa reported that Linchpin Capital intended to list on the ASX following a merger with fund manager AD Capital.
Trial by media? This is the Chair of EIEIO and previous MD of AFS in trouble with ASIC again. Maybe trial by Ms Orr might be more appropriate. How many fails are you allowed? Where is Aleks, we need some self righteous indignation, although that might be difficult if you had just been on the EIEIO ‘conference’ in New York.
Another witch- hunt by ASIC chasing the little guy and the big four banks get away with murder. ASIC is a typical regulatory body with no integrity who employ a bunch of failed lawyers who are bitter and twisted. Grow some balls ASIC and do your job! Typical Australia excessive bureaucracy and adherence to official rules and formalities. From that perspective this country is rotten.
ASIC just trying to justify its own existence and to show the Royal commission and politicians it is not asleep at the wheel as they have been for the past 20 years.
spot on!
An investigation has subject a number of companies and directors to legal scrutiny. The allegations are very serious and may constitute criminal proceedings. The court report will be interesting reading
I believe the AFSL that these guys are associated with have taken on a lot of Dover advisers. Way to keep your head down fellows.
in my opinion, all asic doing since Royal commission is hammer people. good chance they now attacking people who did not do anything wrong, as they have done nothing for years who did. many advisers who just my thoughts but what would i know…
One and the same. Peter was the CEO of AFS Group until the Board gave him the flick. AFS went into administration about 5 years ago. Such a shame – it was a fantastic group of advisers who broke away from Zurich and became adviser owned. Although I don’t think the group would have survived in the current environment as the majority of practices received substantial commission income streams. I miss the old days.
It is a disappointment to see another ASIC action resulting in a trial by media. Even the way this article was written infers guilt. I am sure that in the fullness of time and with reflection it will be seen for what it is. Another ASIC action against a legit enterprise that was trying to work collaboratively to protect an alleged unlicensed investment scheme.
We’ve been paying our dealer groups for compliance and now $1500 each to ASIC to check up on the dealer groups. Our money is now being increasingly used to pay lawyers. Advisers and clients will be losers, suffering higher costs while the lawyers (and extra staff hired by ASIC) will be the winners. And we have a legal “best interests duty” to clients. Do the lawyers have any similar duty?
ha ha you kid right nah, you big kidder, lawyers have a duty to no one except to themselves. they have fashioned the law and it’s interpretation to suit their personal goals and objectives obfuscate to lengthen court cases to the longest extent possible for their own benefit
have you met an ethical lawyer before? it’s a rhetorical question by the way.
and people think the financial advice industry has problems
Finally, someone stands up to ASIC’s rogue like behavior. ASIC obviously seems to target driven when it comes to court actions which is the type of behavior they are trying prevent! Look forward to the show…
Is that the same Peter Daly from the failed AFSL, AFS? Trend?
It’s so unfair to raise that! That business was liquidated to avoid its liabilities and claims from consumers. That should never be raised again. Why can’t he just run a new license? ASIC are so difficult, always trying to protect consumers.
Did anyone ever find that AFS money? hmmm………