ASIC bans SMSF adviser

Regulator seeks to enforce undertaking

By Victoria Papandrea
Tue 20 Jul 2010

The corporate watchdog has banned an SMSF adviser for five years and is also seeking to impose a breach of an enforceable undertaking.

ASIC has banned New South Wales-based adviser Barry Jennings from providing financial services for five years.

An ASIC investigation found Jennings had failed to comply with financial services laws when he provided services on behalf of Future Trading Corporation (FTC) between December 2004 and December 2007.

ASIC concluded that neither FTC nor Jennings held an Australian financial services licence (AFSL), nor were either representatives of a licensee in relation to the financial products they were advising on.

Jennings was found to have provided advice to approximately 50 clients on setting up self-managed superannuation funds and offshore companies to invest in unregistered financial products.

The corporate watchdog said Jennings' ban reinforces ASIC's first priority, which is focused on assisting and protecting retail investors and financial consumers. It is also the result of an ongoing investigation into the Super Save Superannuation Fund and the Integrity Plus Fund.

Meanwhile, ASIC has also commenced proceedings in the NSW Supreme Court, seeking a declaration and orders against Empower Invest and Newcastle Palais Holdings for breaches of an enforceable undertaking.

ASIC initially investigated allegations these companies, and their respective directors Kenneth Watson and Brien Cornwell, promoted and operated a managed investment scheme in relation to a property development in Newcastle without registration and without holding an AFSL.

The scheme raised $769,500 in total from 10 investors. ASIC's investigation revealed that offers had been made to a larger number of investors to join the scheme, and took action to prevent the further promotion of the scheme.

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