ASIC obtains final orders against Park Trent

The Supreme Court of NSW has handed down final orders against Park Trent Properties Group Pty Ltd (Park Trent), further to its judgment against it on October 15, 2015.

The court made the following orders against Park Trent:

• declarations that Park Trent had unlawfully carried on an unlicensed financial services business for over 5 years by providing advice to clients to purchase investment properties through a self-managed super fund (SMSF); and
• a permanent injunction against Park Trent restraining them from providing unlicensed financial product advice to clients regarding SMSF's.

Park Trent has also been asked to post a notice on its website outlining the orders against it.

In his judgment, his Honour Acting Justice Sackville said that 'the publication of a notice on its website appropriately recognises the seriousness of Park Trent's contravention and the public interest in bringing Park Trent's conduct to the attention of the community'. 

"This outcome sends a strong message, that there are serious consequences for property spruikers who break the law by providing unlicensed financial advice," said Greg Tanzer, commissioner of the Australian Securities and Investments Commission.

ASIC had launched legal proceedings in November 2014 against Park Trent who, by the time of the trial in June 2015 had advised over 860 members of the public to establish and switch funds into an SMSF.

On 15 October, the court found that Park Trent, from March 2010 to June 2015, breached the Corporations Act by providing financial product advice without holding a proper licence or authority. This advice related to setting up self-managed super funds for investing in property.

The ASIC website advises clients of Park Trent about getting financial or legal advice about their investment decisions on superannuation.