ASIC freezes Investment Intelligence funds
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.
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