Queensland company Penta Capital Pty Ltd has agreed to pay $53,280 to comply with four infringement notices issued by ASIC. ASIC alleges Penta Capital made a series of false and misleading statements on its website.

Between May 2022 and February 2023, Penta Capital’s website included the following statements which ASIC alleges are misleading:

• it managed $6.9 billion on behalf of retail, wholesale and institutional investors,
• it held $AUD350 million in assets under management,
• it had been in operation for 25 years, between 1997 and 2022, and
• it had received sponsorship or approval, or was otherwise affiliated with, the Financial Services Council, Australian Investment Council, Property Council Australia and Australian Investment Council.

ASIC alleges that these statements were misleading because Penta Capital did not manage any assets on behalf of retail, wholesale or institutional clients, held no assets under management and had only been in operation since around 5 May 2022.

ASIC further alleges that Penta Capital did not have any sponsorships, approvals or affiliations from the Financial Services Council, Australian Investment Council, Property Council Australia and Australian Investment Council.

Penta Capital paid its first instalment towards the infringement notices on 22 December 2023.

If Penta does not pay the remaining instalments ASIC may further investigate and file civil penalty proceedings.

Payment of an infringement notice is not an admission of liability.

The specific reasons for ASIC’s concerns will be set out in the infringement notices, which will be published when all instalments have been paid, on the Credit and ASIC Act infringements notices register.

Background

Penta Capital is not an Australian financial services licensee or authorised representative, but associated entities Penta Asset Management Pty Ltd and SEQ Asset Management Pty Ltd were authorised representatives of AFS licensee Avalon Funds Management Limited between 1 September 2022 and 19 April 2023. Avalon Funds Management is not the subject of investigation by ASIC.

ASIC’s Regulatory Guide 234 (RG 234) provides general guidance to the financial services industry on misleading promotional material.

Editor's note:

On 29 March 2024, Penta Capital completed payment of $53,280 to comply with four infringement notices.