Qld advice firm sees AFSL cancellation
ASIC has cancelled the Australian Financial Services Licence (AFSL) of Queensland-based Next Generation Advice Pty Ltd (NGAA), which is in liquidation.
On 18 October, the regulator cancelled the firm’s licence after the Queensland Supreme Court ordered the company be wound up on 23 August 2024.
Next Generation Advice operated a financial services business in Queensland which had held its AFSL since 14 September 2006.
ASIC has specified that the licensee must continue its membership of the Australian Financial Complaints Authority (AFCA) until 17 October 2025.
This week’s Wealth Data analysis also noted that Next Generation Advice had ceased and lost three advisers.
Moreover, ASIC said it is aware that the licensee – through its authorised representatives – had recommended investments to clients that included Global Capital Property Fund Limited (GCPF), which is in liquidation, and the Shield Master Fund.
United Global Capital (UGC) and GCPF were wound up by the Federal Court in Victoria on 3 October as its affairs were in an “unsatisfactory state”. Among reasons given for the wind-up were a justifiable lack of confidence in the conduct and management of GCPF’s affairs and a risk to the public interest that warrants protection.
GCPF is an unlisted public company, which was incorporated on 15 August 2019, with 538 shareholders, from whom it raised around $85 million in share capital. It was run by directors Joel Hewish, Brett Dickinson and Chris Pappas, although Hewish has since resigned as he received a banning order from ASIC. Hewish was also the sole director of UGC, which had its AFSL cancelled on 31 May 2024.
In the judgment released on 21 October, Justice Penny Neskovcin detailed the extent of the complications afflicting the firm and its “UGC advice model”.
Separately, the Shield Master Fund – a managed fund whose responsible entity (RE) is Keystone Asset Management – saw its assets frozen by the Federal Court earlier this year amid a continuing investigation.
In late June 2024, the Federal Court appointed an independent party to have full control of the bank accounts of Shield Master Fund.
Last month, ASIC applied for its responsible entity Keystone Asset Management to be liquidated.
AUTHOR
Jasmine Siljic
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