ASIC, financial advice

ASIC freezes SMSF adviser’s assets

ASIC Sunny Prakash SMSF Assets frozen

ASIC has frozen the assets of an SMSF adviser and auditor following concerns about activities in relation to the trading accounts of his clients.

The Australian Securities and Investments Commission (ASIC) has started legal action against a Brisbane-based SMSF adviser and auditor following concerns about activities relating to client trading accounts.

The corporate watchdog stated it had begun proceedings in the Federal Court against Sunny Mahendra Prakash and related companies Principal Financial Services Pty Ltd, Self-Managed Super Pty Ltd, Provest Enterprises Pty Ltd and Super Funds Australia Pty Ltd ITF Principal Superannuation Fund.

“ASIC is currently investigating the businesses conducted by Mr Prakash and the related companies, including in connection with financial advice and activities on client trading accounts from 28 January 2016 onwards,” it stated.

As part of the proceedings, the court made orders on 28 March 2023 preserving the assets of Prakash and the related companies and restraining him from leaving Australia. These orders were varied on 19 April 2024, allowing for some carve-outs of assets subject to preservation.

Prakash, who operated a business from Upper Mount Gravatt in Brisbane, is a certified practising accountant, registered tax practitioner, SMSF auditor and financial adviser.

He was authorised by Principal Financial Services to provide financial product advice regarding life insurance, investments, retirement savings account products and superannuation, but according to ASIC’s Financial Adviser Register, ceased being an authorised representative on 1 April 2024.

The matter is listed for a case management hearing on 16 May.

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