POWERED BY MOMENTUM MEDIA
Court clears Diversa of advice oversight practices
The Federal Court has found Diversa Trustees acted efficiently, honestly and fairly and took reasonable steps to ensure its representatives complied with financial services laws, culminating legal proceedings that commenced in 2021.
ASIC had previously alleged that Diversa contravened the law between 13 March 2019 and 18 December 2020 by allowing financial adviser Nizi Bhandari and Australian Dealer Group (ADG), which operated a website called ‘Australian Super Finder’, to sign consumers up to its YourChoice Super product.
Through ‘Australian Super Finder’, a consumer could request a search for lost super and ADG offered to consolidate consumers’ ‘found’ super into a single fund.
With these proceedings, the corporate regulator alleged Diversa and the OneVue Group (which provided many day-to-day functions for the YourChoice Super fund) knew or should have known that the Australian Super Finder business was engaging in concerning behaviour and was at risk of breaking the law.
Additionally, it alleged that the OneVue Group paid approximately $7.5 million in commissions on behalf of Diversa.
In the Federal Court today, it found that Diversa “did not fail to act efficiently, honestly and fairly or fail to take reasonable steps to ensure its representatives complied with financial services laws”.
“ASIC pursued this case as part of our focus on trustee oversight of advice, which, if not done properly, can enable inappropriate behaviour by service providers and others,” said ASIC deputy chair, Sarah Court said.
“ASIC will continue to work with superannuation trustees emphasising the importance of risk management when dealing with third-party providers and others.”
ASIC is carefully reviewing the judgment, it added.
Bhandari was permanently banned by ASIC from providing financial services and engaging in credit activities in March 2021. He also faces criminal charges in the Magistrates’ Court of Victoria. ASIC also cancelled ADG’s Australian financial services licence.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
