ASIC has cancelled the Australian credit licence of a property spruiking firm for breaching national credit reporting rules.
The regulator revoked the licence of the company formerly called Heritage Financial Solutions Australia Pty Ltd and Heritage – Freedom & Security Pty Ltd (Heritage Financial Solutions) because the company, which is currently called David Parry Finance Pty Ltd, was placed into liquidation on 26 March 2015.
The National Consumer Credit Protection Act 2009 states that ASIC may cancel a credit licence if the licensee becomes an externally-administered body corporate.
According to an announcement released this morning, this cancellation of the company’s credit licence is part of an ongoing ASIC investigation into the conduct of a group of people and companies related to Heritage Financial Solutions, involving advice to investors to establish an SMSF for investment in real estate in Queensland and arranging finance for those investments.
ASIC stated it has concerns about the way the loans and property ownership have been structured.
“Investors who obtained advice or finance from people associated with the company formerly known as Heritage Financial Solutions should contact their lender and if necessary, 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 stated.
[Related: Brokers accused of abusing SMSF rules]