Brisbane adviser sees assets frozen by ASIC
The corporate regulator has commenced “urgent” Federal Court proceedings against a Brisbane-based financial adviser.
ASIC announced on 9 May that it has commenced “urgent proceedings” in the Federal Court against Sunny Mahendra Prakash and his related companies, Principal Financial Services Pty Ltd, Self-Managed Super Pty Ltd, Provest Enterprises Pty Ltd and Super Funds Australia Pty Ltd ITF Principal Superannuation Fund.
The regulator said that Prakash is a certified practising accountant, registered tax practitioner, self-managed superannuation fund auditor and financial adviser who is authorised by Principal Financial Services Pty Ltd to provide financial product advice regarding, among other products, retirement savings account products and superannuation.
ASIC added that it is currently investigating the businesses conducted by Prakash and the related companies, including in connection with financial advice and activities on client trading accounts from 28 January 2016 onwards.
On 28 March 2024, the court made orders preserving the assets of Prakash and related companies, and restraining him from leaving Australia.
On 19 April 2024, the parties consented to a variation to carve outs to those asset preservation orders.
In her judgment on 28 March, Justice Meagher said that the matter arose as a result of ASIC receiving suspicious activity reports and a reportable situation lodged with it by CommSec, the online share trading platform operated by the Commonwealth Bank.
“The concerns raised by CommSec were as to the manner in which the defendant’s invested money on behalf of the clients, movements of money between clients’ accounts and those of the defendants, including Mr Prakash’s personal accounts and those of other defendants, and as to whether Mr Prakash was investing client funds for his own purposes,” Justice Meagher said.
“CommSec have suspended the defendants’ accounts until 2 April 2024. Thereafter, CommSec proposes to close the defendants’ suspended accounts.”
The matter is listed for a case management hearing on 16 May 2024.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
