The corporate watchdog has commenced civil penalty proceedings against a collapsed firm, which offered self-managed super fund services and worked alongside a real estate agency and mortgage broking
ASIC takes collapsed firm to court for remuneration breaches
ASIC takes collapsed firm to court for remuneration breaches
The corporate regulator has commenced civil proceedings against a collapsed financial services group for allegedly paying illegal bonuses to advisers around the purchase of property through SMSFs.
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In a statement, ASIC said it had initiated the legal action against liquidated group DOD Bookkeeping, formerly known as Equiti Financial Services (Equiti FS).
Equiti FS was part of the Equiti Group of companies that offered SMSF establishment and administration services, real estate and mortgage broking services.
“ASIC alleges that, between 26 October 2015 to 27 August 2018, Equiti FS paid three advisers bonuses totalling $164,750 upon settlement of property purchases those advisers recommended their clients make through either an existing SMSF or an SMSF to be established,” the regulator said.
ASIC alleged that between 26 October, 2015, to 27 August, 2018, Equiti FS paid three advisers bonuses totally $164,750 upon settlement of property purchases those advisers recommended their clients make through either an existing SMSF or an SMSF to be established.
The bonuses applied to purchases arranged by Equiti Property, another company part of Equiti Group.
ASIC alleged these bonuses breached the ban on conflicted remuneration under the
Corporations Act 2001 because they could reasonably be expected to influence the financial product advice provided or choice of product recommended.
It was also alleged between 18 May, 2015, and 13 February, 2018, it breached the
Corporations Act when its employed advisers gave financial advice on 12 occasions that was not in their clients best interests and was not appropriate for their clients.