In June, ifa reported that Linchpin Capital – parent company of non-bank licensees Beacon Group, Libertas Financial Planning and Risk and Investment Advisors Australia (RIAA) – was planning to merge with AD Capital and list on the ASX as a joint entity.
However, an AD Capital spokesperson has now confirmed that the fund manager has terminated its share sale agreement with Linchpin.
A statement to ifa said its decision to terminate the agreement with Linchpin was made “immediately after AD Capital became aware of the pending ASIC proceedings involving Linchpin and its related entities and officers concerning suspected breaches of the Corporations Act 2001”.
The statement said AD Capital was not aware of the ASIC investigation into Linchpin until it became public on 2 July 2018.
AD Capital chairman John Darling said, “Whilst this is a very disappointing outcome we remain optimistic as AD Capital will continue to identify and pursue suitable opportunities to maximise returns for its investors.”
ASIC announced on 2 July that it had commenced action against Linchpin in the Federal Court in Brisbane.
The proceedings relate to Linchpin and its subsidiary Endeavour Securities, which ASIC alleges operate a managed investment scheme – namely the ‘Investport Income Opportunity Fund’ – without holding a licence.
ASIC has also alleged that Linchpin used investor funds for its own purposes without disclosing that use to investors.
The corporate regulator obtained court orders against Linchpin on 30 July, restraining the firm from promoting or carrying on any financial services business in Australia, providing financial services advice, or dealing in and promoting financial products.
In an email to Linchpin’s staff and adviser network, executive director Peter Daly said there would be no adverse impact for the company’s financial advice subsidiaries.
According to AD Capital – there has been no confirmation at all that such a Termination Exists or any of its spokespeople having said that … this is as todays date Wedensday 4.00 pm ??? So what is going on ?
if ad capital was to continue with any sort of acquisition it would be a reputational detriment on the company and people within. and what skeletons are still to be uncovered if a liquidator is appointed.
Have Linchpin misled AD Capital during their Due Diligence? And have Linchpin withheld information from AD Capital pertaining to the ASIC investigation?
According to their recent letter – Absolute Idiots and Old Financial Planners
Aleks? Aleks ? Where are you? Time for some investigative journalism. Isn’t this the company run by the King of the AOIFP? The same AOIFP telling us we are idiots and can’t pass an exam? The same AOIFP arguing we should fight for our best interests ( no mention of clients here!!) didn’t his last licensee go bust? What does it cost to keep this AOIFP news off the front page? And can CBA get in on the deal?
AIOFP