The Federal Court has ordered the winding-up of a property related organisation tied to a financial advice firm that advised clients to set up SMSFs and invest in related ventures.
According to the Australian Securities and Investments Commission (ASIC), the court’s decision applies to Global Capital Property Fund Limited (GCPF), with Ross Blakeley and Kelly-Anne Trenfield from FTI Consulting appointed as liquidators.
ASIC initially obtained interim orders from the Federal Court on 20 June to freeze the assets of both GCPF and its related financial advice firm, United Global Capital Pty Ltd (UGC). UGC had been acting as GCPF’s financial services licensee since March 2020.
The corporate regulator later filed an amended application on 9 September to appoint liquidators to GCPF, to which the company agreed. The court confirmed the liquidators’ appointment last week, giving them control over GCPF’s assets and allowing them to manage the company’s property.
UGC is also in liquidation after ASIC froze its assets, cancelled its financial services licence and banned its director, Joel James Hewish, from providing financial services for 10 years.
ASIC’s investigation found UGC representatives contacted clients and recommended they establish SMSFs, roll over their superannuation and invest in GCPF, where Hewish had a financial interest.
The regulator found UGC obtained client details through a third-party website, offering a ‘superannuation health check’ to attract potential investors.
Although UGC claimed no personal advice was given, ASIC determined the company breached its personal advice obligations by failing to act in clients’ best interests and providing inappropriate advice.
The freezing orders against UGC were lifted after the liquidator was appointed and the court dismissed the proceedings against UGC on 1 October.
ASIC has stated its investigations into both GCPF and UGC are ongoing and has encouraged impacted creditors and investors to contact FTI Consulting for assistance.
