Two self-managed superannuation (SMSF) advice companies have agreed to court orders preventing them from select business activities after ASIC sought interim court orders against them.
The corporate regulator obtained the orders against Queensland-based firms Royale Capital Pty Ltd and ActiveSuper Pty Ltd over concerns they mislead investors about their investments.
An ASIC investigation into the activities of the groups found Royale Capital Pty Ltd (now known as ACN 143 832 053) and ActiveSuper Pty Ltd raised $4.75 million from more than 200 investors.
"ASIC is concerned that Royale and Active were offering their self-managed superannuation fund (SMSF) clients shares in companies based in the [United States] and the British Virgin Islands, when the appropriate disclosure documents had not first been lodged with ASIC," ASIC said in a statement.
"ASIC understands that representations were made to SMSF clients that these foreign companies were to use the funds raised to purchase distressed properties in the US."
The corporate regulator is also concerned that Royale and ActiveSuper failed to comply with provisions of the financial services laws, in particular operating an unlicensed financial services business; and requirement for adequate financial product disclosure to investors.
It also expressed concern the groups engaged in unsolicited hawking of financial products, and the provision of misleading and/or deceptive information to investors.
On 10 July, Melbourne federal court judge, Justice Marshall, made orders restraining Royale and Active, as well as their directors Justin Gibson and Jason Burrows, from dealing with any funds within the superannuation accounts of their current SMSF clients; and offering shares without the appropriate disclosure document.
The orders also prevent the groups and directors from debiting funds from their SMSF client accounts and further, debiting funds held in the Royale and Active company bank accounts, other than with client consent for ongoing administration of the SMSF.
The orders also excluded the directors from dealing with any funds held in controlled United States bank accounts, and dealing with any real properties purchased with client superannuation funds.
Royale and Justin Gibson consented to the orders.
The matter will return to the court for further hearing on 27 July.
