Imposed conditions on Shartru Wealth Management – July 28, 2023
Shartru Wealth Management Pty Ltd (Shartru) has been found not to have been properly monitoring and supervising its representatives, and ASIC has therefore imposed additional conditions on its Australian financial services (AFS) license. Some of the company’s financial advice was also found failing to meet best practise and obligations.
With the additional license conditions, Shartru is required to have an independent consultant to review its audit processes.
ASIC cancels AFS licence for Stephen Wan Tat Chan – July 28, 2023
The AFS license of Stephen Wan Tat Chan has been cancelled after he failed to prepare and lodge required financial statements and auditor opinions with ASIC. Wan Tat Chan also failed to pay ASIC’s industry levies, and to keep an external dispute resolution membership with the Australian Financial Complaints Authority.
Director charged for unlicensed conduct – July 26, 2023
Sasha Hopkins and his company, The A Team Property Group, has been served with a civil action for alleged unlicensed conduct, and for running multiple unregistered managed investment schemes.
ASIC has also applied to wind up the company, and five of the investment schemes, associated companies and trusts that were used by Hopkins.
Allegedly, Hopkins and the company promoted its business online and on social media, and were offering customers property investment opportunities in a ‘joint venture’ development program of real estates – and raised over A$32m ($21.6m). However, neither Hopkins or The A Team Property Group held an Australian Financial Services License (AFSL) that allowed them to do so.
From the civil action, ASIC seeks from the Federal Court:
- civil penalty orders against Hopkins for allegedly running a financial business without an AFSL, including operating unregistered managed investment schemes in breach of the law;
- an order to wind up The A Team Property Group;
- orders to appoint liquidators and wind up the five Special Purpose Vehicles and schemes;
- Ludlow St Hamilton Pty Ltd
- Hunter Hopkins Project 2 Pty Ltd
- Hunter Hopkins Project 6 Pty Ltd
- Hunter Hopkins Project 7 Pty Ltd
- Hunter Hopkins Project 8 Pty Ltd
- disqualify Hopkins from managing corporations, and from carrying out a financial services business.
Investment firm charged with greenwashing – July 25, 2023
Vanguard Investments Australia has been charged for allegedly misleading conduct by making false and misleading statements in relation to certain ESG exclusionary screens applied to investments in a Vanguard fund.
Allegedly, Vanguard misled customers by claiming that all securities in the Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Fund) were screened against certain ESG criteria, where they were marketed as “securities with an ethically conscious screen”.
Investments held by the Fund were based on an index called the Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index (Index), however, ASIC alleges that the ESG research was not conducted over a significant proportion of issuers.
And as of February 2021, the Index and the Fund included issuers that violated the ESG criteria, including:
- for the Index: 42 issuers which collectively issued at least 180 bonds; and
- for the Fund: at least 14 issuers that collectively issued at least 27 bonds.
According to ASIC, these bonds exposed investors to investments tied to fossil fuels, including ones linked to oil and gas exploration.
In total, ASIC has issued over A$140,000 ($94,720) in infringement notices regarding alleged greenwashing, including three notices totalling A$39,960 ($27,036) against Vanguard for separate greenwashing conduct.
“We consider that the screening and research undertaken on behalf of Vanguard was far more limited than that being promised to investors, and we consider this constitutes another example of greenwashing.”
Sarah Court, Deputy Chair, ASIC
ASIC grants temporary relief for Funeral Saver Safety Net
Besides the regular disciplinary actions, ASIC has also granted temporary relief for Funeral Saver Safety Net the last week.
The initiative aims to help financially disadvantaged consumers to save for their funeral. The Safety Net will not be sold to customers, but can be recommended by a financial counsellor or funeral provider.
“The Safety Net aims to assist consumers with funeral expenses by providing a ‘safety net top-up’ payment if they have not met a savings goal of A$5,000 ($3,326), provided they meet the eligibility criteria.”
The temporary relief is granted for five years, and will expire on July 18, 2028.
