Early super release broker caught out

By Lachlan Gilbert

A BRISBANE broker has been forced to accept a permanent injunction preventing him from granting clients early access to their superannuation lump sums.

Denis Jon Davis consented to the Federal Court that he would no longer advertise or promote any business that facilitated the early release of superannuation. He also agreed to refrain from being involved in any business that enabled clients to roll over, redeem or transfer their super interests.

Davis consented to a declaration that he had carried on a financial services business without holding an Australian Financial Services Licence.

The declaration and injunctions came after theAustralian Securities and Investments Commission(ASIC) filed an application for an injunction against him on December 17, 2003.

Two days later, the Federal Court in Brisbane issued interlocutory injunctions against Davis and another promoter of the scheme, Mark Walter David.

Others also issued with interlocutory injunctions were: trustee Bronwynne Elizabeth Clarke, and other promoters of the scheme, Justin Mark Sheehan of Bundaberg, Super Equity; Errol Lloyd Cassidy of Yamba; and Sharlene Jayne Moore of Ipswich.

Permanent injunctions were eventually issued against David on February 5 this year.

ASIC deputy executive director, enforcement, Allen Turton, says ASIC is closely monitoring businesses that purport to give people illegal and early access to their superannuation.

“Consumers should be aware there are limited circumstances in which members of super funds can access their superannuation benefits early,” he says.

“ASIC advises consumers to only deal with those who are licensed to provide advice in relation to superannuation interests.”