Qld company penalised for false AUM representation
A Queensland company falsely representing that it managed $6.9 billion for investors and was affiliated with the Financial Services Council (FSC) has been penalised for false and misleading statements.
Penta Capital Pty has agreed to pay $53,280 to comply with four infringement notices by ASIC – payment is not an admission of guilt.
It has paid the first instalment, and ASIC said it may investigate further and enact civil penalty proceedings if it fails to pay the remaining instalments.
Between May 2022 and February 2023, Penta Capital’s website included the following statements which ASIC alleges are misleading:
• It managed $6.9 billion on behalf of retail, wholesale and institutional investors.
• It held $350 million in assets under management.
• It had been in operation for 25 years, between 1997 and 2022.
• It had received sponsorship or approval, or was otherwise affiliated with, the Financial Services Council, Australian Investment Council, Property Council Australia and Australian Investment Council.
ASIC alleges that these statements were misleading because Penta Capital did not manage any assets on behalf of retail, wholesale or institutional clients, held no assets under management and had only been in operation since around 5 May 2022.
ASIC further alleges that Penta Capital did not have any sponsorships, approvals or affiliations from any industry bodies.
Penta Capital is not an Australian financial services licensee or authorised representative (AR). However, associated entities Penta Asset Management and SEQ Asset Management were ARs of AFS licensee Avalon Funds Management between 1 September 2022 and 19 April 2023.
Avalon Funds Management is not the subject of ASIC investigation.
AUTHOR
Laura Dew
Recommended for you
ASIC’s court case with Interprac is causing advisers to explore the possibility of self-licensing, according to My Dealer Services, as they observe the reputational damage it can bring to a practice.
AZ NGA has entered a strategic partnership with a Sydney advice firm with $600 million in assets under advice to support its succession plans and future growth.
With complaints on the rise and an expanded jurisdiction, the Australian Financial Complaints Authority is on the hunt for four C-suite roles, three of which are newly-created positions.
Ahead of the 1 January 2026 education deadline for advisers, ASIC has issued its ‘final warning’ to the industry, reporting that more than 2,300 relevant providers could be on their way out.
