ASIC taking civil action against MyWealth Manager
Australian Securities and Investment Commission (ASIC) has taken civil action against former financial adviser Mustafa Mohammed and related entities.
ASIC had commenced civil proceedings in Federal Court against Mohammed, as well as Mahek Mustafa, Mubashir Mohammed, MyWealth Manager, MyWealth Protection, 3M Financial Planning and Secure Investments.
ASIC had sought declarations from Federal Court the defendants had contravened the Corporations Act by operating an unregistered managed investment scheme called MyWealth Manager.
It was alleged the scheme should had been registered and the defendants operated the scheme without holding an Australian Financial Services Licence (AFSL).
They had also alleged Mustafa Mohammad operated MyWealth Manager from February 2017 and targeted consumers from certain ethnic and cultural backgrounds.
It was alleged the scheme raised approximately $7 million from over 55 investors who were encouraged to roll over their externally managed superannuation into newly created self-managed super funds which was then invested by way of loan into MyWealth Manager which was used for personal use.
On 21 November 2019, ASIC obtained interim orders that related to:
- appointing Tim Norman and Rob Woods of Deloitte as receivers and managers of MyWealth Manager and 3M Financial Planning;
- restraining the assets of the remaining defendants;
- restraining the defendants from carrying on a financial services business in this jurisdiction without an AFSL;
- restraining the defendants from managing, directing, controlling or otherwise operating the unregistered scheme; and
- restraining the defendants receiving, soliciting, transferring or disposing of investor funds received in connection with the unregistered scheme.
The hearing had been adjourned to a date to be fixed after 5 December, 2019.
AUTHOR
Chris Dastoor
Recommended for you
As Insignia Financial formally completes the separation of MLC from NAB, Money Management reflects back on how the acquisition came to be and where Insignia sees MLC going forward.
The Financial Services Council has made multiple recommendations to ASIC regarding exercising its powers around AFSLs to mitigate the risk of failing companies including greater capital requirements.
Advice licensee Centrepoint Alliance has announced a service partnership with self-managed superannuation fund solution provider SuperConcepts.
The Compensation Scheme of Last Resort says it has received over 200 claims for compensation relating to personal financial advice since its inception and detailed the specific recurring issues being raised by claimants.
