The Federal Court of Australia in Queensland yesterday made orders in the proceedings brought by ASIC against Linchpin Capital, the holding company that owns non-bank licensees Beacon Group, Libertas Financial Planning and Risk and Investment Advisers Australia (RIAA).
According to court documents, obtained by ifa, Linchpin has been restrained from “promoting or carrying on any financial services business in Australia”, “providing financial services advice” and “dealing in [and] promoting financial products”.
It has also been restrained from promoting the “unregistered scheme” that originally sparked ASIC’s ire and led to the commencement of proceedings by the corporate regulator.
The court also made a number of interim orders restricting Linchpin from incurring liabilities or making transactions relating to its property.
It is not clear from the documents whether the restraining orders will impede the ability for Linchpin’s subsidiaries to continue providing advice, but a financial services solicitor told ifa it is entirely plausible that Linchpin-owned licensees would be able to continue trading and authorising third parties despite the orders.
Justice Dennington ruled that costs be reserved and that both ASIC and Linchpin now file and serve supplementary submissions in response to the interim orders.
ifa reported last week that Linchpin will defend the charges brought by ASIC, with Beacon Group managing director Peter Daly expressing regret with the corporate regulator’s approach to the proceedings so far.
ifa has approached both ASIC and Linchpin for further comment.
Do you know more about this? editor@ifa.com.au
Waiting to see all three Beacon AFSLs shut down without notice, with no further advice, and all ARs offloaded in 28 days. Followed by an official ASIC press release recommending all Beacon clients get a second opinion ASAP.
I expect I will wait a long time: only $6m is involved, and no personal grudges are held.
Parasites abound
How can these guys be allowed to run an afsl , they set up a fund that proports to invest in mortgaes, and then use the funds for their own use, and to lend out to advisers.
Anyone who is licensed through a low cost afsl needs their head read if they are not looking for a move. You can’t do financial services on this cheap anymore. Comply, and adjust your business model or get out. Other wise you will lose it all….
Yes just look at AMP as an example. Are they still providing dealer services for free for larger firms and or as low as 5% of revenue for new?
Says a lot for AIOFP
In comparison you’ve got the FPA with members before a Royal Commission. AMP, NAB, CBA. Seems odd how complicit FPA members are with their behaviour. Yet likely to caste stones at other associations.
Plenty of Industry Funds coming up before the RC too and of course ‘independents’ (Sam H/Dover) didn’t go so well before the RC either…..bad advice is everywhere and anywhere.
Neither Sam.H or Dover were legally independent. Lets not tar us with that brush.
You’ve got some serious issues dude.
Time for AOIFP to ride in to the rescue. Maybe the Adviser protection fund still has some money to spend, specially on the chairman’s firm. Good on you AOIFP we need to protect these cowboys.
The daly speqcial
advisers need to get out of beacon before administrators arrive and control advisers books
Dover
Is this AFS version two? Poor Beacon guys
+1
Those ex AFS are still unhappy. Ultimately those who are ex Beacon will be unhappy.
A leopard never changes its spots!