A Sydney-based financial advice business operating under the AFSL of Beacon’s Financial Link Group has collapsed with over $600,000 owed to unsecured creditors.
Documents obtained by ifa reveal that liquidators were appointed to National Financial Advice Alliance (NFAA) on 17 August. Linchpin Capital Group Limited is listed as the largest unsecured creditor at $450,000 owed.
Sources close to the situation understand that NFAA borrowed $450,000 from Beacon’s Investport Income Opportunity Fund (IIOF).
ASIC has commenced proceedings in the Federal Court against Linchpin over the IIOF fund.
ASIC said an investigation found Linchpin was operating the scheme “without holding an Australian Financial Services Licence as required by the Corporations Act” and used investor funds for its own purposes “without disclosing this use to investors”.
More to come.
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