Latest news with #SarahCourt
Sky News AU
5 days ago
- Business
- Sky News AU
National law firm investigating potential class action against First Guardian Master Fund and Shield Master Fund after accusations of operating Ponzi scheme as more than $1bn on the line
Lawyers from Slater and Gordon are investigating a potential class action on behalf of investors against two collapsed superfunds - First Guardian Master Fund and Shield Master Fund - as they face accusations of running a Ponzi scheme. The national law firm has advised not only are 12,000 Australians expected to be affected by the alleged scheme, but more than $1b is at stake of being lost to the collapsed funds. Keystone Asset Management, the responsible entity for the Shield Master Fund, and Falcon Capital, the manager of the First Guardian Master Fund, have both entered into liquidation with ASIC understood to be carrying out a range of investigations against all parties involved. Previously ASIC deputy chair Sarah Court said ASIC's investigations are looking at the entire chain, including conduct of the lead generators, the financial advisers, the superannuation platforms, 'who we think have a real role here', and the research houses that 'listed these funds as investable'. Slater and Gordon principal lawyer in class actions Andy Wei confirmed the firm is investigating claims that investors were advised to roll their superannuation assets into largely unreliable funds, which has now caused great uncertainty amongst investors on how much of their funds would be recoverable. 'What we're seeing here is potentially deliberate misleading of investors, many of whom are everyday Australians looking to secure their nest eggs,' Mr Wei said. 'They were repeatedly assured that their superannuation would flow into diversified portfolios with steady returns.' He said despite this assurance, 'recent information shows that these funds were largely illiquid with their values grossly overstated.' Mr Wei added illiquid assets such as real estate, retirement accounts, collectibles and private equity could be harder to recover without 'significant loss of value'. He affirmed there is a chance that more than 12,000 Australians could be left out of pocket, with more than $1bn in superannuation 'potentially wiped out'. 'These are people's savings, and they deserve far better than this,' he said. 'Superannuation is meant to be tightly regulated, and many investors likely believed their money was safely managed by trusted, blue-chip superannuation companies.' A Slater and Gordon spokesman highlighted conduct issues at First Guardian 'observed' by FTI Consulting liquidators and accused the superfund of operating a Ponzi scheme with thousands of Australian's superannuation. 'Slater and Gordon understand that the liquidators of First Guardian have observed issues arising from co-mingling of investor funds, such that investors' monies were mixed up and used to pay for other investors' redemptions, or investment commitments and management fees, when ordinarily those redemptions, commitments, and fees should have come from income generated through investment activities,' they told NewsWire. 'Conduct of this kind is common to that seen in Ponzi schemes, and how this was allowed to occur forms a part of our investigation.' Mr Wei has urged investors who have been affected to come forward and contact the firm to help shaped the best path forward for recovery of their funds.
SBS Australia
03-07-2025
- Business
- SBS Australia
Australians urged to be on 'red alert' amid concerns over risky super-switching schemes
Australians have been warned to watch out for pushy salespeople pressuring them to make quick changes to their superannuation provider. The Australian Securities and Investments Commission (ASIC) has warned Australians to be "on red alert for high-pressure sales tactics, clickbait advertising and promises of unrealistic returns". The corporate watchdog has warned of "industrial-scale" schemes encouraging people to move their retirement savings into complex and risky schemes. 'Industrial scale' schemes ASIC deputy chair Sarah Court said the watchdog is "increasingly concerned" about individuals being tricked into putting retirement savings into "high-risk schemes", adding that these are often property investments. "The outcomes are certainly not what those consumers have been expecting," she told ABC radio on Thursday. "We are just increasingly seeing examples on an industrial scale." Some people were being told their superannuation balance may be insufficient for retirement before being encouraged to switch to high-risk investments, she said. There are potential benefits to switching and consolidating your super, but that should only happen after careful consideration of the potential risk, ASIC has cautioned. As of March 2025, financial comparison site Finder reports Australia had 24.7 million superannuation accounts from 112 fund providers, excluding those with fewer than seven members, holding a total of $4.2 trillion in assets. It says 77 per cent of Australians have a super fund, and 5 per cent plan to open one in future. 'Big red flags' With the start of the new financial year, ASIC recommends that Australians be especially careful when reviewing their super funds. "When it comes to sales calls about super switching, there are some big red flags people should be alert to — being asked to make a quick decision is one of the most obvious," Court said. "The initial salespeople can be very persuasive, often the underlying schemes are complex or not made clear to the consumer." According to ASIC, some of these red flags include high-pressure sales tactics, cold calls, offers to find and consolidate lost super for free, poor product disclosure, and unrealistic promises. "It may be very difficult for even experienced investors to spot problems. Once you start on the path it can be hard to get off," Court said. "These calls don't have the hallmarks of a typical scam. The caller will seemingly have your best interests at heart. "Consumers should always ask questions about salespeople's connections to funds, particularly in circumstances where a particular fund appears in the pitch, as there may be a commission arrangement. "If you are unsure or are feeling pressured, just hang up."
Yahoo
03-07-2025
- Business
- Yahoo
Superannuation 'red alert' for millions as $1 billion in retirement savings feared lost
Australians are being urged to watch out for rogue superannuation schemes following fears tens of thousands of people have lost more than $1 billion in retirement savings. The corporate watchdog ASIC says there are some 'big red flags' people should be alert to. ASIC deputy chair Sarah Court said the start of a new financial year was often a trigger for people to check their super fund's performance. It also provided an opportunity for promoters to try and pressure people into changing their super into a new fund. Aussies have been warned to be on 'red alert' for high-pressure sales tactics, clickbait advertising and promises of unrealistic returns to encourage you to switch your super into risky investments. RELATED Aussie set to retire in 40s with $1.6 million after 'aggressive' superannuation move Woolworths payment change hits dozens of supermarkets today Aussie earning $300,000 a year in job after completing three day course 'When it comes to sales calls about super switching, there are some big red flags people should be alert to — being asked to make a quick decision is one of the most obvious. Remember, a good deal won't vanish overnight,' Court said. 'The initial salespeople can be very persuasive, often the underlying schemes are complex or not made clear to the consumer, and it may be very difficult for even experienced investors to spot problems. Once you start on the path it can be hard to get off.' Court said the calls didn't have the hallmarks of a typical scam, with the caller often seemingly having your best interests at heart and offering to find you a better product or find lost super for free. "They may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy,' she said. Court has urged people to ask call centre operators what commissions they were earning to encourage investors to switch, who the operator worked for and who managed the fund. 'If you are unsure or are feeling pressured, just hang up,' she advised. ASIC has provided this list of red flags: High pressure sales tactics Cold calls Touting free super 'health checks' and prizes, often through social media or website ads Offering to find and consolidate 'lost super' for free Involvement of unlicensed people in advice process Engagement over the phone with limited client contact with a financial adviser Poor or no product disclosure Promises of high or unrealistic returns People are being encouraged to get independent financial advice. Aussies looking to find lost super and consolidate their accounts can do this for free through the Australian Taxation Office (ATO) via in retrieving data Sign in to access your portfolio Error in retrieving data
West Australian
02-07-2025
- Business
- West Australian
ASIC urges consumers to guard superannuation from promoters flogging quick switches to precarious funds
The nation's corporate cop is trying to arm consumers against high-pressure sales tactics intended to lure them into moving their life savings into knotty, high-risk investments. The alert represents another push by the Australian Securities and Investments Commission to protect the country's multi-trillion dollar superannuation pool from falling into the wrong hands. ASIC said the end of another financial year was the trigger for many Australians to check how their super investments have performed, providing an opportune time for promoters to try and flog products claiming to deliver better returns. These sorts of calls or the true motivations can often be difficult for the average investor to pick up on, according to ASIC deputy chair Sarah Court, who is spearheading the awareness campaign. Based on ASIC's reconnaissance, many of the calls don't have the usual 'hallmarks of a typical scam', with many callers professing to have an investor's best interests at heart, offering ways to track lost super or to help find a better-returning product. 'They may also involve referrals to financial advisers during the call to create a sense of comfort and legitimacy,' Ms Court said. Asking questions about a salesperson's connection to the fund to establish whether there is a commissioning arrangement was a good way to establish the caller's motivations, she said. Pressure to make a decision quickly, calls out of the blue and promises of unrealistic returns were among the red flags to keep in mind, according to ASIC. 'The initial salespeople can be very persuasive, often the underlying schemes are complex or not made clear to the consumer, and it may be very difficult for even experienced investors to spot problems,' the ASIC lieutenant said. 'If you are unsure or are feeling pressured, just hang up.'
Time of India
05-06-2025
- Business
- Time of India
Westpac's RAMS falsified payslips for loan approvals: ASIC
BENGALURU | SYDNEY: Australia 's corporate regulator said the mortgage broking unit of No.2 lender Westpac had used falsified payslips from non-existent employers to approve home loans in a lawsuit filed on Wednesday. The Australian Securities and Investments Commission (ASIC) said RAMS Financial Group, a Westpac subsidiary until the bank shuttered the business last year, engaged in widespread unlicensed conduct from June 2019 to April 2023. The regulator made the allegations in a statement of facts agreed by Westpac, filed in a federal civil lawsuit, and published on Wednesday. The agreed statement said that in some cases it was unclear where the false documents originated but in others "RAMS franchisees or their employees ... knowingly submitted loan applications supported by false documentation or information or were complicit in doing so". The actions created "the opportunity for loans to be provided to customers who otherwise may not have qualified for those loans, and thereby increasing commissions earned by RAMS franchisees", ASIC Deputy Chair Sarah Court said in a statement. RAMS has admitted to dealing with unlicensed mortgage operators, failing to properly supervise its representatives, and other shortcomings, ASIC added. Westpac said in a statement that RAMS had agreed to finalise the matter in court and "will continue to work cooperatively with ASIC to resolve the proceedings as quickly as possible". A 2019 Royal Commission aired widespread allegations of financial firms failing to take adequate due diligence before approving loans, resulting in tougher regulation. ASIC said it was seeking unspecified financial penalties from RAMS. Westpac said it expects its existing provisions to be enough to cover the cost of the lawsuit. Westpac shut down RAMS to new home loans in 2024, while continuing to retain the ongoing loans. The closure prompted RAMS franchisees to file a class action lawsuit against Westpac, claiming it improperly terminated viable businesses and was ultimately responsible for the loan processing errors. A franchisee spokesperson said the franchisees weren't consulted during the ASIC investigation and "the regulator's findings about RAMS' 'systemic organisational governance failure' and inadequate supervision reflect Westpac attempting to shift institutional failures onto franchisees". The date of the first hearing in ASIC vs Westpac is yet to be scheduled.
