When Splinter says "the next post" I think it's referring to this thread
Be careful of [deleted], they are sharks. Please help
- Thread starter vluu28
- Start date
I heard that ASIC had finally spat the dummy and are going to stitch him up for good this time.
http://www.asic.gov.au/asic/asic_pu...kings+from+Henry+Kaye+and+others?openDocument
Seeems more an expensive slap on the wrist.
http://www.asic.gov.au/asic/asic_pu...kings+from+Henry+Kaye+and+others?openDocument
Seeems more an expensive slap on the wrist.
Since neither of the above links worked for me, I tracked THIS one down. Is this the story that you were referring to??
(and, does my link work???
)
http://www.asic.gov.au/asic/asic_pu...kings+from+Henry+Kaye+and+others?openDocument
Regards,
Edited in after finding that MY link didn't work either !!!
Go to www.asic.gov.au/asic/asic_pub.nsf and trawl through the headlines looking for HK and/or NII.
Note, this story and any posted info on ASIC website MAY NOT BE THERE after (say) mid-August 2003 !!!! They don't usually hang around for months....
(and, does my link work???
)http://www.asic.gov.au/asic/asic_pu...kings+from+Henry+Kaye+and+others?openDocument
Regards,
Edited in after finding that MY link didn't work either !!!
Go to www.asic.gov.au/asic/asic_pub.nsf and trawl through the headlines looking for HK and/or NII.
Note, this story and any posted info on ASIC website MAY NOT BE THERE after (say) mid-August 2003 !!!! They don't usually hang around for months....
Copied from ASIC site.
© Australian Securities & Investments Commission. Reproduced with permission.
Press release of 31.7.03 follows -
03-237 ASIC obtains undertakings from Henry Kaye and others
Thursday 31 July 2003
The Australian Securities and Investments Commission (ASIC) has obtained undertakings from Mr Henry Kaye and Mr Alan Meagher, National Investment Institute Pty Ltd (NII) and Novasource Consulting Pty Ltd (Novasource), following proceedings commenced in the Federal Court in Melbourne.
Mr Kaye and NII are involved in running investment training courses, which purport to teach people various methods for increasing their wealth through investment in property. The courses, which comprise seminars, conferences, workshops and other training programs, also promote and provide information about investment in mezzanine finance products* and cost between $4,000 and $55,000 to attend.
Neither Mr Kaye, NII or Novasource hold an Australian Financial Services Licence (AFSL) to give financial product advice, as required by ASIC.
Following Court-ordered mediation in front of a District Registrar of the Federal Court, Mr Kaye and NII have provided undertakings to the Federal Court which will prevent them from conducting seminars as they have in the past.
Mr Kaye, NII and Novasource have also provided an enforceable undertaking to ASIC in relation to corrective advertising, payment of compensation and ongoing monitoring of the parties compliance with these undertakings.
'Mr Kaye, NII and Novasource cannot give any financial product advice in relation to mezzanine financing, or any other financial product without first obtaining an AFSL, or becoming an authorised representative of an AFSL holder. The content of the seminars will have to be dramatically changed in order to comply with these undertakings', ASIC Executive Director of Financial Services Regulation, Mr Ian Johnston said.
'ASIC's action and these undertakings send a clear message to promoters of property investment seminars that, should they cross the line into giving financial product advice, they must be appropriately licensed or face enforcement action from ASIC.
'However, consistent regulation of property investment advice by the responsible state bodies would provide additional investor safeguards. ASIC will be releasing a report into wealth creation seminars, including those that focus on property investment, in the next month', Mr Johnston said.
The undertakings
Mr Kaye, NII and Novasource have given undertakings to the Federal Court that they will not:
make any statement or representation in any form to the effect that the training or other services provided by them, as well as the mezzanine finance products or any other products promoted by them, have been approved by ASIC. (This undertaking to the Court was also given by Mr Meagher);
supply, promote or provide any financial product, or give any financial product advice without first obtaining an AFSL, or being an authorised representative of a holder of an AFSL; and
make any recommendation, express any opinion or provide any advice in relation to any mezzanine finance product or any other financial product, nor in relation to any decision about whether to invest in such products, nor shall they deal in such products, until such time as they hold an AFSL, or act as an authorised representative of an AFSL holder.
In addition to the Court undertakings, Mr Kaye, NII and Novasource have given an enforceable undertaking to ASIC that:
NII and Novasource will publish a corrective advertisement in all major daily metropolitan newspapers within seven days;
NII will also offer a full refund of fees to any clients who enrolled in a training program costing more than $1000, between 1 March and 31 December 2002, subject to an independent reviewer being satisfied that the clients relied on the statements and representations made by NII that ASIC approved the course or the mezzanine finance product;
NII will notify all affected clients by 27 August, advising them of their right to claim a refund;
NII and Novasource will appoint an independent party to review and monitor their respective compliance with the undertakings, who will report the findings to ASIC on or before 1 September 2003, 31 December 2003 and 30 April 2004;
both NII and Novasource will also appoint a compliance officer who will institute an education and training program for relevant employees and representatives.
The Federal Court also ordered, by consent, that Henry Kaye, NII and Novasource pay ASIC's costs in the proceedings, fixed in the sum of $50,000. A copy of the EU is available on ASIC's website at www.asic.gov.au. [Internet Manager: The EU will be available on this website shortly.]
Background
ASIC commenced proceedings against Messrs Kaye and Meagher, NII and Novasource in March 2003 after alleging that the defendants were making false, misleading and deceptive representations that NII and its training courses were approved by ASIC.
ASIC also alleged that various aspects of the training courses provided by NII constituted financial advice, that the mezzanine finance products offered at the courses are financial products, and that consequently, Mr Kaye, NII and Novasource were required to hold an Australian Financial Services Licence (AFSL).
Mr Kaye, NII and Novasource are not licensed or otherwise approved in any way by ASIC, nor are the training courses or mezzanine finance products conducted and promoted by them.
ASIC was concerned that the representations made by NII and its associates may have induced clients to attend the courses, or to act on the information provided at the courses. ASIC was also concerned that some clients may have falsely believed NII and its associates held an AFSL to conduct a financial services business.
ASIC widened the proceedings to seek a declaration and injunctions from the court that the defendants had engaged in conduct that requires an AFSL, which they did not hold.
* Mezzanine finance products are facilities or investments by or through which an investor invests or contributes funds for use by a property developer in connection with a property development as top-up finance, that is, as finance additional to finance obtained by the property developer from a financial institution.
Updated: 31/07/2003
© Australian Securities & Investments Commission. Reproduced with permission.
© Australian Securities & Investments Commission. Reproduced with permission.
Press release of 31.7.03 follows -
03-237 ASIC obtains undertakings from Henry Kaye and others
Thursday 31 July 2003
The Australian Securities and Investments Commission (ASIC) has obtained undertakings from Mr Henry Kaye and Mr Alan Meagher, National Investment Institute Pty Ltd (NII) and Novasource Consulting Pty Ltd (Novasource), following proceedings commenced in the Federal Court in Melbourne.
Mr Kaye and NII are involved in running investment training courses, which purport to teach people various methods for increasing their wealth through investment in property. The courses, which comprise seminars, conferences, workshops and other training programs, also promote and provide information about investment in mezzanine finance products* and cost between $4,000 and $55,000 to attend.
Neither Mr Kaye, NII or Novasource hold an Australian Financial Services Licence (AFSL) to give financial product advice, as required by ASIC.
Following Court-ordered mediation in front of a District Registrar of the Federal Court, Mr Kaye and NII have provided undertakings to the Federal Court which will prevent them from conducting seminars as they have in the past.
Mr Kaye, NII and Novasource have also provided an enforceable undertaking to ASIC in relation to corrective advertising, payment of compensation and ongoing monitoring of the parties compliance with these undertakings.
'Mr Kaye, NII and Novasource cannot give any financial product advice in relation to mezzanine financing, or any other financial product without first obtaining an AFSL, or becoming an authorised representative of an AFSL holder. The content of the seminars will have to be dramatically changed in order to comply with these undertakings', ASIC Executive Director of Financial Services Regulation, Mr Ian Johnston said.
'ASIC's action and these undertakings send a clear message to promoters of property investment seminars that, should they cross the line into giving financial product advice, they must be appropriately licensed or face enforcement action from ASIC.
'However, consistent regulation of property investment advice by the responsible state bodies would provide additional investor safeguards. ASIC will be releasing a report into wealth creation seminars, including those that focus on property investment, in the next month', Mr Johnston said.
The undertakings
Mr Kaye, NII and Novasource have given undertakings to the Federal Court that they will not:
make any statement or representation in any form to the effect that the training or other services provided by them, as well as the mezzanine finance products or any other products promoted by them, have been approved by ASIC. (This undertaking to the Court was also given by Mr Meagher);
supply, promote or provide any financial product, or give any financial product advice without first obtaining an AFSL, or being an authorised representative of a holder of an AFSL; and
make any recommendation, express any opinion or provide any advice in relation to any mezzanine finance product or any other financial product, nor in relation to any decision about whether to invest in such products, nor shall they deal in such products, until such time as they hold an AFSL, or act as an authorised representative of an AFSL holder.
In addition to the Court undertakings, Mr Kaye, NII and Novasource have given an enforceable undertaking to ASIC that:
NII and Novasource will publish a corrective advertisement in all major daily metropolitan newspapers within seven days;
NII will also offer a full refund of fees to any clients who enrolled in a training program costing more than $1000, between 1 March and 31 December 2002, subject to an independent reviewer being satisfied that the clients relied on the statements and representations made by NII that ASIC approved the course or the mezzanine finance product;
NII will notify all affected clients by 27 August, advising them of their right to claim a refund;
NII and Novasource will appoint an independent party to review and monitor their respective compliance with the undertakings, who will report the findings to ASIC on or before 1 September 2003, 31 December 2003 and 30 April 2004;
both NII and Novasource will also appoint a compliance officer who will institute an education and training program for relevant employees and representatives.
The Federal Court also ordered, by consent, that Henry Kaye, NII and Novasource pay ASIC's costs in the proceedings, fixed in the sum of $50,000. A copy of the EU is available on ASIC's website at www.asic.gov.au. [Internet Manager: The EU will be available on this website shortly.]
Background
ASIC commenced proceedings against Messrs Kaye and Meagher, NII and Novasource in March 2003 after alleging that the defendants were making false, misleading and deceptive representations that NII and its training courses were approved by ASIC.
ASIC also alleged that various aspects of the training courses provided by NII constituted financial advice, that the mezzanine finance products offered at the courses are financial products, and that consequently, Mr Kaye, NII and Novasource were required to hold an Australian Financial Services Licence (AFSL).
Mr Kaye, NII and Novasource are not licensed or otherwise approved in any way by ASIC, nor are the training courses or mezzanine finance products conducted and promoted by them.
ASIC was concerned that the representations made by NII and its associates may have induced clients to attend the courses, or to act on the information provided at the courses. ASIC was also concerned that some clients may have falsely believed NII and its associates held an AFSL to conduct a financial services business.
ASIC widened the proceedings to seek a declaration and injunctions from the court that the defendants had engaged in conduct that requires an AFSL, which they did not hold.
* Mezzanine finance products are facilities or investments by or through which an investor invests or contributes funds for use by a property developer in connection with a property development as top-up finance, that is, as finance additional to finance obtained by the property developer from a financial institution.
Updated: 31/07/2003
© Australian Securities & Investments Commission. Reproduced with permission.
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Some would rightly claim that this is a dissapointing outcome.
Mediation, even court ordered mediation, is not binding on other parties.
That is, unlike litigation (a court decision), mediation has minimal precedent value.
Yes they have an enforceable undertaking - enforceable in that if they are found in breach they will end up in Court. But again, it is only an undertaking specific to their circumstances.
Sure, one can argue that it has fired a huge warning shot across the bow of these shonks, but it is a less than ideal outcome.
The enduring message, therefore, has to be LOOK AFTER YOURSELF - because there is no guarantee that the law will be able to help you.
MB
Mediation, even court ordered mediation, is not binding on other parties.
That is, unlike litigation (a court decision), mediation has minimal precedent value.
Yes they have an enforceable undertaking - enforceable in that if they are found in breach they will end up in Court. But again, it is only an undertaking specific to their circumstances.
Sure, one can argue that it has fired a huge warning shot across the bow of these shonks, but it is a less than ideal outcome.
The enduring message, therefore, has to be LOOK AFTER YOURSELF - because there is no guarantee that the law will be able to help you.
MB
