ASIC continues to front-end load CSLR workload | Australian Markets

It was a apply which the Australian Securities and Investments Commission (ASIC) commenced even earlier than the legislative institution of the Compensation Scheme of Last Resort (CSLR) and it’s persevering with – directing affected shoppers how to lodge complaints.

It was the apply which noticed complaints relating to the collapse of Dixon Advisory front-end load the CSLR, as soon as it got here into operation, and the regulator is equally urging shoppers impacted by the Shield Master Trust and now Global Capital Property Fund (GCPF).

When ASIC on Monday introduced that it had banned gold Coast-based financial adviser, Andrew Rankin of Next Generation Advice Pty Ltd for 4 years, it additionally took the difficulty to clarify to shoppers that they need to act promptly to file a criticism with the Australian Financial Complaints Authority (AFCA).

While ASIC’s media release targeted on the banning, it additionally identified that affected shoppers have till 17 October, this yr, to lodge a criticism with AFCA earlier than Next Generation is no longer deemed to be a member of the exterior dispute decision (EDR) regime.

Not talked about in ASIC’s clarification is that after a criticism is lodged with AFCA by affected Next Generation shoppers, the firm’s incapacity to pay any AFCA dedication will make sure the matter is referred to the CSLR.

Next Generation Advice is in liquidation however has been required by ASIC to stay a member with AFCA till 17 October.

“If you are a client of Next Generation Advice and have concerns about the conduct of your adviser or the advice you received, you should consider lodging a complaint with the Australian Financial Complaints Authority,” ASIC’s announcement mentioned.

“AFCA is the external dispute resolution scheme for financial complaints in Australia and must deal with complaints independently and fairly. AFCA’s service is free for consumers.”

As ASIC introduced on Monday, it discovered Rankin failed to act within the best pursuits of a quantity of his shoppers and gave inappropriate advice whereas authorised by Next Generation Advice.

ASIC discovered Rankin beneficial shoppers set up an SMSF and invest most of their retirement financial savings into the Global Capital Property Fund Limited (in liquidation) (GCPF) and the Pivotal Diversified Fund (Pivotal).

The regulator later famous that its investigation into issues related to the GCPF and the Shield Master Fund is constant.