Qld company penalised for false AUM representation
A Queensland company falsely representing that it managed $6.9 billion for investors and was affiliated with the Financial Services Council (FSC) has been penalised for false and misleading statements.
Penta Capital Pty has agreed to pay $53,280 to comply with four infringement notices by ASIC – payment is not an admission of guilt.
It has paid the first instalment, and ASIC said it may investigate further and enact civil penalty proceedings if it fails to pay the remaining instalments.
Between May 2022 and February 2023, Penta Capital’s website included the following statements which ASIC alleges are misleading:
• It managed $6.9 billion on behalf of retail, wholesale and institutional investors.
• It held $350 million in assets under management.
• It had been in operation for 25 years, between 1997 and 2022.
• It had received sponsorship or approval, or was otherwise affiliated with, the Financial Services Council, Australian Investment Council, Property Council Australia and Australian Investment Council.
ASIC alleges that these statements were misleading because Penta Capital did not manage any assets on behalf of retail, wholesale or institutional clients, held no assets under management and had only been in operation since around 5 May 2022.
ASIC further alleges that Penta Capital did not have any sponsorships, approvals or affiliations from any industry bodies.
Penta Capital is not an Australian financial services licensee or authorised representative (AR). However, associated entities Penta Asset Management and SEQ Asset Management were ARs of AFS licensee Avalon Funds Management between 1 September 2022 and 19 April 2023.
Avalon Funds Management is not the subject of ASIC investigation.
AUTHOR
Laura Dew
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
