The Australian Securities and Investments Commission (ASIC) has been successful in having a provisional liquidator appointed to two companies related to a superannuation business.

His Honour Justice Philip Mandie ordered that Mr Gess Rambaldi and Mr Andrew Yeo, of Pitcher Partners, be appointed jointly and severally as the provisional liquidators of the PFS Wholesale Mortgage Corporation Pty Ltd and Shaun White Pty Ltd.

This application follows ASIC’s earlier success in getting orders appointing a provisional liquidator to PFS Business Development Group Pty Ltd and eight other companies, as well as restraining Mr Shaun Oliver White, Mrs Nicole White and Mr Damian Tolson from carrying on business relating to superannuation.

ASIC had successfully applied for orders on 5 August 2005, restraining each of the following parties (the PFS Group) 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):

• PFS Business Development Group Pty Ltd
• PFS Construction Consulting Group Pty Ltd
• PFS Construction Consulting Group (Ashridge Lane A) Pty Ltd
• PFS Construction Consulting Group (Ashridge Lane B) Pty Ltd
• PFS Construction Consulting Group (Ashridge Lane C) Pty Ltd
• Kaluski White & Associates (Black Gully Road) Limited
• Meridian Event Management Pty Ltd
• Nycam Werd Pty Ltd
• Kaluski White &Associates Pty Ltd (In Administration)
• Shaun Oliver White
• Nicole White
• Damian Tolson.

Orders similarly restraining PFS Wholesale Mortgage Corporation Pty Ltd and Shaun White Pty Ltd were granted by Justice Mandie.

ASIC has alleged, among other things, that the PFS Group misled investors and acted unconscionably, leading investors to roll over approximately $800,000 of existing superannuation funds into self-managed superannuation funds (SMSFs) that the PFS Group established for them, while also leading investors to invest a further $700,000 into joint venture investments with the PFS Group.

ASIC is continuing to investigate how the funds invested with the PFS Group have been used. Mr Rambaldi and Mr Yeo will provide their report as provisional liquidators to the court by 23 September 2005. The proceedings have been adjourned to 21 October 2005.

ASIC’s Executive Director of Enforcement, Ms Jan Redfern said ASIC took action to protect the community.

‘ASIC acted to restrain these operators from providing financial advice or offering financial products enticing people to rollover their superannuation funds into ‘do it yourself’ funds. This case highlights the importance of carefully considering the options when it comes to managing your super ’, Ms Redfern said.

This action arose out of ASIC’s superannuation switching surveillance, which was developed to ensure advisers fulfil their obligations in relation to providing advice on a client’s existing superannuation fund and any new fund that might be recommended.

The obligations of financial advisers and trustees of SMSFs are set out in 'Meeting your Obligations', a booklet recently published by ASIC and the ATO. It also details the approach ASIC and the ATO will take to ensure people comply with their obligations.

Consumers are encouraged to call ASIC’s Infoline on 1300 300 630 for a copy of the booklet, or for further information.

End of release

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