Planner raid reports inaccurate
Media reports out of Sydney that the homes and offices of financial planners have been raided by the Australian Securities and Investments Commission (ASIC) are believed to be inaccurate.
It is understood no raids have taken place, instead the regulator last week served written notice to two financial planners.
ASIC has the power to do this under sections 30 or 33 of the Corporations Act, and can either give the person being served one week to respond or can require that information be provided immediately.
It is understood the regulator attended the home of one Sydney planner to serve a notice on Thursday last week, and that the person later attended ASIC’s offices to assist with the regulator’s investigations. It is also believed a financial planner based in Melbourne was issued with the same notice and underwent a similar process.
A spokesperson for ASIC said the regulator cannot comment on operational matters.
A Sydney Morning Herald report suggested the corporate regulator yesterday raided the homes and offices of former and currently licensed financial planners.
It is understood the investigations are related to complaints made by managed investment scheme operator and listed company Forest Enterprises Australia (FEA).
One of the Herald’s sources states that ASIC is responding to a complaint by FEA that some financial planners had “fabricated the existence of investors in Forest Enterprises schemes — a practice known as tomb stoning”. But the source said the planner denied these accusations.
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