ASIC takes legal action against Growth Plus
The Australian Securities and Investment Commission (ASIC) has commenced legal action against Growth Plus Financial Group, now in liquidation, and Ben Jayaweera after they contravened the Corporations Act and its Australian Financial Services licence (AFSL) , prior to the company's wound-up.
According to ASIC, the company who was at the time the trustee of the Australian Diversified Sector Income Fund (ADSIF) had issued units in the ADSIF which were contrary to the authorisation of its AFSL.
ASIC also alleged that Jayaweera was "knowingly concerned" in Growth Plus' contravention.
Additionally, the regulator said it was seeking a number of injunctions in relation to Jayaweera's continuing involvement in ADSIF and that in September the Supreme Court of Queensland ordered that he should be restrained from:
- carrying on a financial services business in this jurisdiction without AFSL;
- managing, directing, controlling or otherwise operating the ADSIF;
- selling or otherwise disposing of the property of ADSIF or ADSIF companies;
- receiving any benefit or other payment from or by any person in relation to any activities of the ADSIF companies; and
- obtaining funds by any means from individuals (including their superannuation funds)other than professional investors.
In March the Australian Taxation Office (ATO) wound up Growth Plus in relation to unpaid debts and appointed the liquidators. Prior to this, ADSIF was unregistered managed investment scheme operated by Growth Plus.
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