ASIC cancels credit licence of SMSF promoter Smithson & Baye

ASIC cancels credit licence of SMSF promoter Smithson & Baye
ASIC cancels credit licence of SMSF promoter Smithson & Baye

ASIC has cancelled the Australian credit licence of credit providers Smithson & Baye as part of an ongoing investigation into a property and self-managed superannuation fund promoting group.

The group includes the companies formerly called Heritage Financial Solutions Australia and Sunpac Finance Pty Ltd.

The sole director and shareholder of Smithson & Baye, Mr Ricardo Viana, is also the sole director and shareholder of Sunpac Finance.

ASIC found  Smithson & Baye failed to keep adequate financial records, comply with notices to produce documents, comply with its licence conditions in order to make sure representatives comply with the credit legislation and ensure representatives were adequately trained. 

Smithson & Baye purported to have accepted assignment of, and was collecting payments from borrowers in respect of, additional loans provided to clients of Heritage Financial Solutions and Sunpac Finance, beyond that which mainstream lenders would lend, to assist those clients to purchase real estate in Queensland through SMSFs.

ASIC found that:

  • Smithson & Baye had contravened its obligations under the National Credit Act;
  • it had reason to believe that Smithson & Baye was likely to contravene its obligations under the National Credit Act;
  • it had reason to believe that Smithson & Baye is not fit and proper to engage in credit activities; and
  • there is no reasonable prospect that the defects in Smithson & Baye's compliance with the National Credit Act can or would be remedied. 

 

ASIC's investigation involves advice to investors to establish an SMSF for investment in real estate in Queensland and the arranging of finance for those investments.

ASIC has concerns about the way the loans and property ownership have been structured and advises anyone who obtained advice or finance from people associated with Heritage Financial Solutions, Sunpac Finance, Smithson & Baye or Vegeta Pty Ltd (currently in liquidation) to contact their lender and obtain independent professional advice to ensure that the loans to their SMSFs and their property ownership have been structured in compliance with the trustees' superannuation law obligations.

ASIC's investigation is continuing.

Smithson & Baye has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Tags: 
Smsfs Asic

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