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ASIC cracks down on property promoter for providing unlicensed financial product advice

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Julia Corderoy | 12 Nov 2014, 08:29 AM Agree 0
A property investment promoter has been taken to court by ASIC for unlawfully promoting the use of SMSFs to purchase investment property
  • observer | 12 Nov 2014, 10:25 AM Agree 0
    Finally, now they need to turn their attention to "Laura Dean" or whats left of the business, they have done the same thing. Most of that business though has been re-branded to escape the publicity and the directors have divested themselves of all their real estate assets. One can only imagine that they also expect ASIC will come knocking one day.
  • Rodney Fox | 12 Nov 2014, 11:03 AM Agree 0
    This has been going on for years. The regulators are just too slow when it comes to enforcement. In the meantime, these unlicensed sprookers make a mockery of us licensed professionals. Go get them ASIC! You have your work cut out for you.
  • ben | 12 Nov 2014, 11:32 AM Agree 0
    What's worse, not having a proper financial services licence or marketing properties up to $50,000 over market price??.. ASIC and all the accountable authorities need to address this since it has been going on for years.. We all know it... We all see the damage... We report the damage and we dance around these scammers. Consumers need to be protected...
  • Don Perth | 12 Nov 2014, 01:19 PM Agree 0
    It happened to me last year in May when the property developer advertised the property as NRAS approved. A month after contract was signed and sealed, a letter came from their lawyer saying there was no NRAS for this property. The contract itself has a big NRAS letter printed on the first page! Reported to ASIC and the Consumer Affairs and both did nothing about it. Met with Consumer Affairs and their top dogs in their office in Perth and was told it was not in the interest of the public to prosecute this people!! The applicant does not have the money to take the developer to court.
  • ben | 12 Nov 2014, 01:33 PM Agree 0
    Don, can I suggest you write directly to Mr Peter Kell Deputy Chairman ASIC GPO Box Melb Vic 3000.

    Complaints via the usual channels are pointless and Mr Kell has to respond.
  • Jules Lewin | 12 Nov 2014, 01:49 PM Agree 0
    Legal Eagle - a guide to Perth Property available in January will assist stopping this type of conduct by educating buyers see the website

    As a lawyer I always advise clients to speak to their accountant about what entity to buy in its in their best interest not the sellers. There are too many like the above company out there but big brother will catch up with them eventually, great work ASIC.
  • Again Park Trent?? | 12 Nov 2014, 03:36 PM Agree 0
    For as long as we have been in business (16 years), we were getting clients that had bought property in the "we fly you up there and stitch you up good" deals promoted by Park Trent.

    Every property was very much overpriced to pay for the lifestyles of horrible operators and their associates. This in turn snookered the clients when they tried to refinance or sell their home, due to lack of equity. The ownership of the business was transferred to a family member and bang! back in business.

    Everyone knows about this company in this industry, and I am assuming it will go the same way again. Jail time might be the only thing that will help stop the same reaction from Park Trent. Too lucrative not to do it over and over when the penalty is just money. Not for these guys. Please make this one count ASIC - make it one for the little guys - the consumers.
  • Old Broker | 13 Nov 2014, 09:13 AM Agree 0
    This is going to be the next collapse of the integrity of our financial system in this area of advice. This will make the "Storms and ACR" irrelevant in the scale of losses.
  • Paul Stevens | 29 Nov 2014, 11:00 PM Agree 0
    we carry on about 500 clients... what about the thousands and thousands of clients that have been ripped off by Commonwealth Bank financial planners, (subject of the current Senate enquiry) and PIS and all the rest of them who tipped people in to Gunns trees etc etc, and all those financial planners who tipped clients into Westpoint 1st mortgage funds, not to mention LM investments on the Gold Coast. A real estate agent might rip you off once, a financial planner will rip you off every month for the rest of your life.....

    ...consider obtaining appropriate advice from an authorised financial adviser, ASIC Commissioner Greg Tanzer said.
    “Dealing with an authorised adviser affords specific protections under the law, such as acting in the best interests of clients, a duty to avoid conflicts of interest and providing access to dispute resolution schemes.”
    WHAT A JOKE... nobody gets anything.
  • Houston | 15 Jan 2015, 12:07 AM Agree 0
    We have lost money through Parktrent and I am now looking at were to go from here.
  • charlie | 17 Jan 2015, 08:20 AM Agree 0
    I don't get why one party is only to be blamed, and not the consumers as well. consumers need to educate themselves, no one is going to do what is best for them as they would themselves. stop being so lazy, and depends on others to feed you information while you flipping on the tv remote control. organization such as ASIC and ACCC takes decades to resolve anything, by the time they solve or catch the criminals, you may already been dead or they have no money left for you to get back on what you have lost. I have little faith in ASIC or ACCC, to look after my interest at heart. the saying that "A" students work for "C" students while "B" students work for the government speak volume about government workers.
  • Don Perth | 19 Jan 2015, 05:36 PM Agree 0
    FYI information, the NRAS was withdrawn by the provider a month after my contract was accepted.
  • CharlieX | 21 Jan 2015, 10:24 AM Agree 0
    Don Perth, did the people that lost their money get the money back? I read that some people lost their money, so what happen? did the involved advisors/companies paid a heavy fine, jail time, ban from the industry, from leading consumers in that that criminal direction?
  • Don Perth | 21 Jan 2015, 11:10 AM Agree 0
    No, ASIC and WA Consumer Affairs were not interested saying there were not enough complaints and not in the interest of the public to prosecute the promoters and developers etc. ASIC and CA are only good at soft targets and not interested with long drag court cases.
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