Advisers’ role ‘under investigation’ in Dollarforce scheme
A number of advisers allegedly advised clients to take out reverse mortgage loans to invest in a failed Victorian property investment scheme, the assets of which have been frozen by the corporate regulator.
Van Moulis, practice group leader of legal firm Slater and Gordon, which has launched a class action against the Dollarforce Group of Companies on behalf of 80 investors, said some investments could be sourced to advisers.
However, Moulis told Money Management he could not say whether any advisers could be implicated in the pending class action until Slater and Gordon had completed its investigations.
Many investors are understood to have taken out reverse mortgages to finance their investments in Dollarforce, taking out structured loans that they believed would deliver returns of between 10 and 14 per cent.
Dollarforce directors Clestus Weerappah and Andrea Hawkins raised a total of $43 million from investors, $23 million of which the Australian Securities and Investments Commission (ASIC) alleged has not been returned.
ASIC accused the duo of using the money to finance other investors’ interest payments or transferring it to other accounts they controlled.
Recommended for you
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.
Despite the perception that short-term market events shouldn’t affect portfolio decisions, Praemium research finds 60 per cent of advisers have made portfolio changes in response to US President Donald Trump’s decisions.
International advice group Findex has appointed a senior individual to spearhead its M&A and growth operations across Australia and New Zealand, seeking to make the brand a household name.
