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Qld firm fined over misleading statements, including false FUM claims

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By Rhea Nath
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2 minute read

ASIC has issued four infringement notices to a Queensland company over misleading statements on its website, including that it held $350 million in assets under management and was affiliated with the FSC.

Penta Capital, a Queensland-based company, has agreed to pay $53,280 to comply with four infringement notices issued by the corporate regulator.

A first instalment towards the infringement notices was paid on 22 December 2023 and the corporate regulator has indicated it may further investigate and file civil penalty proceedings if the remaining instalments are not paid by Penta Capital.

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The Australian Securities and Investments Commission (ASIC) alleges that, over a nine-month period between May 2022 and February 2023, the company’s website included false and misleading statements.

These included claims that:

• It managed $6.9 billion on behalf of retail, wholesale, and institutional investors.
• It held $350 million in assets under management.
• It had been in operation for 25 years (between 1997 and 2022).
• It had received sponsorship or approval or was otherwise affiliated with the Financial Services Council (FSC), Australian Investment Council, Property Council Australia, and Australian Investment Council.

ASIC alleges these statements were misleading because Penta Capital did not manage any assets on behalf of retail, wholesale or institutional clients, held no assets under management, and had only been in operation since around 5 May 2022.

Additionally, it alleges that Penta Capital did not have any sponsorships, approvals or affiliations from any industry bodies.

Payment of an infringement notice is not an admission of liability.

Qld firm fined over misleading statements, including false FUM claims

ASIC has issued four infringement notices to a Queensland company over misleading statements on its website, including that it held $350 million in assets under management and was affiliated with the FSC.

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