Provisional liquidators were appointed yesterday to two Townsville based companies, Understanding Retirement Pty Ltd and N.F. & J.M. Dodd & Associates Pty Ltd by the Supreme Court of Queensland following an application by ASIC.

ASIC commenced the proceedings to wind up the companies and to protect the assets of the companies for the investors. ASIC is seeking to wind up the two companies on just and equitable grounds, or because of insolvency.

The proceedings have been adjourned to 27 August 2008 to determine whether the two companies should be wound up and have liquidators appointed.

Background

Mr Neil Dodd was an authorised representative of an Australian Financial Services licence holder, FTL Financial Advice Pty Limited and a director of the two companies (Understanding Retirement Pty Ltd and N.F. & J.M. Dodd & Associates Pty Ltd).

Mr Dodd’s clients were mainly northern Queensland residents who consulted Mr Dodd for general investment and superannuation related matters. Many of the clients were advised by Mr Dodd to purchase shares in his company, Understanding Retirement Pty Ltd.

ASIC alleges that some of the investors have not been issued with the shares they have purchased and that some of the investor’s funds have not been dealt with appropriately.