FPA denies planner involvement in alleged raids

Claims accountants in ASIC's sights

By Kate Kachor
Thu 02 Jul 2009

Association denies financial planners were caught up in an ASIC investigation of agribusiness group Forest Enterprises Australia.

The FPA has confirmed no financial planners were involved in the alleged ASIC raid on Tuesday of business premises and homes of associates of agribusiness firm Forest Enterprises Australia (FEA).

"We understand there were no planners involved in that exercise, that in fact the people involved were accountants," FPA deputy CEO and head of professionalism Deen Sanders said.

"We've also confirmed that it has nothing to do with FPA membership - there were no FPA members involved."

Yesterday, a media report claimed ASIC had undertaken raids of two financial planners, one based in Sydney and one based in Melbourne.

The alleged raids were carried out by the corporate regulator in response to a complaint by FEA that the financial planners had fabricated the existence of investors in the firm's schemes, the report said.

Sanders said the association had received phone calls from concerned members after the financial planning profession was again dragged through the mud.

"Certainly members have raised concerns about the report, the article, and concerns that once again the public press has taken a rumour and turned it into fact," he said.

Sanders would not comment on speculation that details of the alleged raid were inaccurate.

"We're conducting our own inquires into these and related matters around concerns that have been raised about inappropriate advice in relation to managed investment schemes, however we have no way of linking these two issues together. They appear to be unrelated," he said.

"Our early inquiries on this activity suggest that this is a simple matter of criminal behaviour and have nothing to do with financial planning or managed investment schemes."

ASIC and FEA were unable for comment.

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