Linchpin restrained from providing advice
ASIC has been successful in seeking interim court orders against Linchpin Capital, which have placed a number of business restrictions on the dealer group umbrella company.
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? [email protected]
FPA launches consumer campaign
The Financial Planning Association of Australia has launched a new campaign to g...
ASIC enforcement on the rise
The establishment of the ASIC Office of Enforcement has seen investigations and ...
Advice bodies submit code monitoring application
Six professional bodies representing the advice sector have formally lodged an a...