Money Choice licence cancelled
Providing unlicensed self-managed super fund (SMSF) advice was one of the reasons Money Choice had its licence cancelled and its director banned by the financial services regulator.
The Australian Securities and Investments Commission’s (ASIC’s) investigation found failures to comply with credit laws, responsible lending shortfalls and instances of unlicensed SMSF advice.
Matthew George, who was banned from providing financial services for three years and engaging in credit activities for eight years, is the sole director of the Melbourne-based property investment and finance business.
ASIC Deputy Chairman Peter Kell said George advised some clients to set up an SMSF for the purpose of purchasing property, when he was not licensed to provide such advice.
“We do not want to see SMSFs become the vehicle of choice for property spruikers, and the action we’ve taken against George should serve as a timely warning of ASIC’s intention to ensure compliance with the law,” Kell said.
“ASIC is committed to improving the standards of advice given to investors regarding the establishment of SMSFs and the investments within the SMSF, including investment properties.”
Kell added that George had demonstrated, through his conduct, that he was not a fit and proper person to engage in credit activities.
“This included some instances where Mr George preferred his own interests to those of Money Choice’s clients,” he said.
ASIC said George did not adequately carry out his duties as responsible manager and was not qualified to operate a credit business.
Money Choice and George have the right to lodge an application for review of ASIC’s decision with the Administrative Appeals Tribunal.
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