Early release super scheme shut down
The Federal Court in Brisbane has barred the trustee of a self-managed superannuation fund (SMSF) from offering any services or advice after his involvement in a scheme illegally promoting the early redemption of superannuation.
The Court issued permanent injunctions and made declarations against Chad Timmins of the Gold Coast, Queensland after an investigation by theAustralian Securities and Investments Commission(ASIC) andAustralian Taxation Office(ATO).
The action by ASIC and the ATO prevents Timmins from operating the scheme, and from offering any services, or providing any advice in relation to superannuation interests.
Timmins was the trustee of the Chad Timmins Superannuation Fund and placed advertisements in regional newspapers through New South Wales and Queensland promoting the early release of superannuation entitlements through CTS Fund Management (CTSFM).
ASIC and the ATO found during the course of the investigation that from August 2002 to May 2003 Timmins charged a fee to rollover the interest from the preserved component of an investors’ superannuation into the Chad Timmins Superannuation Fund, a self-managed superannuation fund regulated by the ATO.
Timmins was also said to have claimed he would establish SMSFs on behalf of investors, yet neither Timmins or CTSFM was licensed to provide financial services with CTSFM not registered as a company or business name.
The Court found that Timmins had carried on a financial services business without an Australian Financial Services Licence.
According to the Court, Timmins breached both the Superannuation Industry (Supervision) Act and the Corporations Act in numerous ways which caused six investors to suffer loss or damage.
As a result of the Court order Timmins will be prohibited from providing any financial services in relation to superannuation interests or communicate to the public that his servants or agents are able to do so.
Timmins was also barred from being involved with members of regulated superannuation funds redeeming their superannuation interests and can no longer promote CTSFM or any early release, rollover, redemption or superannuation transfer business.
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