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

by Julia Corderoy12 Nov 2014
Property investment promoter, Park Trent Properties Group has been taken to court by ASIC for unlawfully promoting the use of SMSFs to purchase investment property.

ASIC alleges and is seeking declarations that Park Trent is unlawfully carrying on a financial services business without an Australian financial services licence.

According to the regulator, Park Trent has advised at least 500 members of the public to establish and switch funds into an SMSF which are then used to purchase investment properties that are owned or promoted by Park Trent companies.

“Collectively, Australians hold over $1.85 trillion worth of assets in superannuation funds, with $557 billion held in SMSFs. It is important when making decisions regarding superannuation to 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.”



  • by observer 12/11/2014 10:25:19 AM

    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.

  • by Rodney Fox 12/11/2014 11:03:14 AM

    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.

  • by ben 12/11/2014 11:32:18 AM

    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...