Global advice group sees assets frozen by Federal Court
A global advisory firm has been ordered by the Federal Court to freeze its funds and assets for failing to lodge financial statements.
Brite Advisors provides advisory, pension administration and asset management services to clients in Australia, the UK, the US, Switzerland and Hong Kong and also offers an investment platform to self-invested personal pension providers and self-managed super funds (SMSFs).
The regulator applied for the orders for Brite Advisors because it is concerned:
- The current financial position of Brite is unknown, as Brite has failed to lodge with ASIC its financial statements and auditors report for the financial year ended 30 June 2022; and
- The value of Brite’s funds under management has not been reported by any entity within the Brite Group in an audited balance sheet since December 2019.
The firm's website does not disclose an FUM and only one staff member was listed in its Australian division, although it provides contact details for offices in Perth and Sydney.
It describes the advice offering as "we believe good advice matters and we make a commitment to get to know you and understand your goals, so we can consult and guide you on a path to a more secure financial future".
"Brite offers you an all-in-one pension service – from advice to transfers to pension administration and asset management. This means we don’t use middle men or third parties – so we keep control of costs and you keep more of your retirement money," it added.
The Court ordered that Brite be restrained from removing property from Australia, diminishing the value of its property, incurring new liabilities and withdrawing or transferring any monies available in any account with any financial institution in Australia or elsewhere.
“ASIC sought the orders to help protect the beneficiaries of the assets under management by Brite, including the beneficiaries of those who have their pensions or superannuation funds invested on the Brite Platform.”
The orders are in place until a further hearing before the Court, listed for 9 November 2023.
ASIC’s investigation is ongoing.
AUTHOR
Laura Dew
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
