The Australian Securities and Investments Commission (ASIC) has today obtained interim orders in the Supreme Court of Victoria restraining Mr Shaun Oliver White, and nine related companies, from carrying on a business relating to superannuation.

ASIC also obtained orders appointing a provisional liquidator to PFS Business Development Group Pty Ltd and eight other companies.

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 liquidator of the companies.

ASIC successfully applied for orders 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

ASIC has alleged, amongst 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.

ASIC’s application to have a provisional liquidator appointed to two other related companies, PFS Wholesale Mortgage Corporation Pty Ltd and Shaun White Pty Ltd, was adjourned until 19 August 2005.

Mr Rambaldi and Mr Yeo will provide their report as provisional liquidators to the court on 9 September 2005.

‘ASIC’s allegations in this proceeding emphasise the serious issues that face consumers who are considering transferring their superannuation to a self-managed superannuation fund, commonly referred to as a ‘SMSF’ or ‘DIY Fund’, Ms Jan Redfern, ASIC’s Executive Director of Enforcement said.

‘The introduction of super choice means that more consumers can now make decisions to establish their own superannuation fund. I would remind consumers considering setting up a self-managed superannuation fund to check that their adviser is the holder of an Australian Financial Services licence.’

‘A licensed adviser must consider whether the amount of a person’s superannuation savings is sufficient to justify the costs involved to establish and maintain a self-managed superannuation fund’, Ms Redfern said.

This action arose out of ASIC’s superannuation switching campaign which was developed to ensure advisers fulfil their obligations in relation to providing advice concerning a client’s existing super 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 the 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.