Association suspends dodgy SMSF adviser
Money Choice director Matthew George had his Property Investment Professionals Australia (PIPA) membership suspended after the financial services regulator gave him a three-year ban and cancelled his firm's credit licence.
The Australian Securities and Investments Commission (ASIC) announced last week it had banned George from the industry after finding instances of dodgy self-managed super fund (SMSF) advice and failures to comply with credit laws.
In particular, ASIC found that George advised some clients to set up an SMSF for the purpose of purchasing property when he was not licensed to do so, also failing to have the appropriate conflict of interest management systems.
PIPA, which represents property investment professionals, is lobbying the Federal Government to bring property investment advice into a regulatory framework.
PIPA chair Ben Kingsley said the association had suspended the Money Choice's corporate sponsorship and would be conducting its own investigation into the matter.
"George has been issued with a suspension notice and will face a possible expulsion following further investigations," Kingsley said.
"Under our constitution, Money Choice and George as sole director may also face financial penalties for wilfully refusing or neglecting to comply with the provisions of the constitution, or if found guilty, of conduct which in the opinion of the board is prejudicial to the interests of the company," he said.
Although PIPA welcomed ASIC's decision to crack down on the SMSF space, it maintained that this most recent case highlighted ongoing issues within the fast-growing sector.
"We remain concerned with the ongoing lack of regulation surrounding property investment, including within the SMSF space," Kingsley said.
"This sector of superannuation continues to grow exponentially and the alleged wrong-doings of Money Choice is yet another clear reminder that regulation is lacking."
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