ASIC predicts Superfunded’s bankruptcy with liquidator application
The Australian Securities and Investments Commission (ASIC) has applied to the Federal Court for a liquidator be appointed for Superfunded, following allegations that the company was both breaking the law and close to being unable to pay its debts.
ASIC believed that, in encouraging customers to set up self-managed superannuation funds (SMSFs), Superfunded had failed to comply with its obligations to investors.
Specifically, it alleged that Superfunded had:
- Breached the Corporations Act and Superannuation Industry (Supervision) Act in relation to promoters of schemes that encourage or promote the illegal early release of super, either by itself or through its officers and employees;
- Is not managing the Superfunded Trust;
- Is not ensuring that investment loans are being serviced or interest on them collected;
- Is not ensuring that investors are receiving their dividends;
- Has apparently inadequate books, records and financial accounts; and
- Is no longer operational and cannot be permitted to continue or restart operating without appropriate licensing and/or directorship.
The regulator also argued that Superfunded may be unable to pay its debts in the near future, applying for Jason Tracy of Deloitte to be appointed liquidator.
It had previously obtained multiple interim injunctions from the Federal Court against Superfunded, included orders that restrained Superfunded and its sole director and shareholder from providing financial services.
The matter had been listed in the Federal Court on 10 April, 2018.
AUTHOR
Hannah Wootton
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