ASIC shuts down 11 SMSFs

The Australian Securities and Investments Commission (ASIC) is shutting down 11 Melbourne-based self-managed superannuation fund companies related to the PFS Group.

ASIC obtained orders in the Supreme Court of Victoria for the liquidation of PFS Wholesale Mortgage, PFS Business Development Group, PFS Construction Consulting Group, PFS Construction Consulting Group (Ashridge Lane A), PFS Construction Consulting Group (Ashridge Lane B), PFS Construction Consulting Group (Ashridge Lane C), Meridian Event Management, Nycam Werd, Shaun White, Kaluski White and Associates (Black Gully Road), and Kaluski White and Associates, which is currently in administration.

Decisions on whether the self-managed super companies’ three directors — Shaun Oliver White, Nicole White and Damian Tolson — had engaged in false and misleading conduct, and whether they should be banned from the financial services industry and as company officers, have been adjourned until February 22, 2006.

ASIC alleged, amongst other things, that the directors had misled investors into rolling over approximately $800,000 of existing superannuation funds into self-managed super funds, while also persuading investors to contribute a further $700,000 into joint venture investments.

Previously, ASIC had obtained orders appointing a provisional liquidator to PFS Business Development Group and the 10 other companies, as well as restraining the directors from carrying on business relating to superannuation.

The directors have also been prevented from carrying on a financial services business without holding an Australian Financial Services Licence (AFSL) or from carrying on a business related to superannuation interests (without holding an AFSL).

ASIC’s investigation is continuing.