A Victorian self-managed superannuation fund (SMSF) companies' director pleaded guilty to operating a financial services business without a licence and has been fined $2500 by the Melbourne Magistrates Court.
ASIC alleged Damian Tolson, of Hawthorn, a director of the Personalised Finance Solutions group of companies (PFS), encouraged people to invest their superannuation monies in property development projects being undertaken by PFS.
In most cases the superannuation funds involved were self-managed, and had been set up for the investors by another PFS company.
All invested monies were lost, although the presiding magistrate acknowledged, during sentencing, that Tolson did not cause the monies to be lost.
Neither Tolson, nor any other officer of the PFS companies, held an Australian financial services licence.
ASIC's executive director of enforcement, Jan Redfern said the case highlighted the risks of dealing with unlicensed financial service providers.
The charges followed an ASIC investigation into the failed PFS companies, all of which had been previously ordered into liquidation by the Victorian Supreme Court.
