ASIC freezes Investment Intelligence funds

30 July 2012
| By Staff |
image
image
expand image

The financial services regulator has frozen around $3.4 million in funds held by financial mentoring company Investment Intelligence Corporation, amid fears the firm and its sole director operated without an Australian Financial Services Licence (AFSL).

Furthermore, the Australian Securities and Investments Commission (ASIC) has obtained a prohibition of departure order against the company's director Senen Pousa, with the matter due to return to the Queensland Supreme Court for further hearing at a later date.

Investment Intelligence sold financial mentoring memberships involving a number of web-based modules, including general financial literacy, life coaching and foreign currency trading advice.

With 3,000 members worldwide (including Australia), Investment Intelligence recommended that members engage in foreign currency trading through a broker called IB Capital, registered in New Zealand.

According to ASIC, members were then instructed to transfer their funds into an account with ING Bank in the Netherlands, after which their funds would be used for foreign currency trading by US-based Global Forex Management.

The regulator's investigation revealed that Global Forex Management was not registered with the Commodities Futures and Trading Commission in the US to trade in foreign currencies.

ASIC also confirmed that AFSLs were not held by either Investment Intelligence or Pousa, and the investigation is continuing with authorities in the US, Netherlands and New Zealand.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 4 days ago