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Advisers to ‘name and shame’ instos over commissions :
Court restrains unlicensed firm from operating

Court restrains unlicensed firm from operating

A Queensland court has restrained an unlicensed advice firm and its director from carrying on a financial services business following an ASIC investigation.

On 14 December 2018, ASIC commenced proceedings in the Supreme Court of Queensland against Advanced Wealth Financial Services and Richard Gardner, according to a statement.

Mr Gardner and Advanced Wealth had advised clients to set up self-managed superannuation funds (SMSFs) to facilitate the purchase of investment properties in relation to which Mr Gardner received substantial commissions, ASIC said.

On 12 February 2019, the court ordered that Mr Gardner and Advanced Wealth pay ASIC’s costs of the application, fixed at $10,000.

ASIC said the court also made the following declarations:

  • Between 29 April 2016 and 9 November 2018, both Advanced Wealth and Mr Gardner contravened section 911A of the Corporations Act 2001 by providing financial advice to clients to set up SMSFs to facilitate the purchase of investment properties in Australia without holding an AFSL;
  • Mr Gardner, as the sole director and responsible decision-maker for Advanced Wealth, was knowingly concerned in Advanced Wealth’s contravention of section 911A of the Corporations Act between 29 April 2016 and 9 November 2018.

According to ASIC’s financial adviser register, Mr Gardner and Advanced Wealth are not currently licensed nor authorised to provide financial services.

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