The Federal Court has made interim orders restraining two firms within an investment group from promoting their products, alongside limits on words they can use in their advertising.
Mayfair Wealth Partners (Mayfair Platinum) and Online Investments (Mayfair 101) have copped the restrictions after ASIC made an application for an interim injunction.
The corporate regulator recently launched proceedings in the Federal Court against the two companies, alleging their advertisements were misleading or deceptive when promoting two debenture products to wholesale investors.
Payment of capital redemptions to investors in the Mayfair debenture products were suspended on 11 March due to liquidity issues.
On Thursday, Justice Anderson of the Federal Court restrained Mayfair Platinum and Mayfair 101 until further order from:
- “term deposit”;
- “bank deposit”;
- “capital growth”;
- “fixed term”; and
- “term investment”.
The court also ordered that the two companies must post the following notice on their websites, and give a copy of the following notice to each prospective new investor in the Mayfair debenture products:
“The Mayfair 101 Group of companies reminds investors prior to investing in the products offered by the Mayfair 101 Group that:
But the court decline to restrain the defendants from issuing and accepting new investments in the Mayfair debenture products.
It will list the matter for hearing to determine ASIC’s allegations in due course.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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