New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

Joel Robinson

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.

The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.

The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.

<img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" />

Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.

Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.

The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.

"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.

"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.

"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."

Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

Asic

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Property developer Craig Gore has been sentenced to five years imprisonment with a non-parole period of two years.
Gore had been found guilty following a five-day, judge-alone trial at the Brisbane District Court.
Gore was found guilty of six counts of fraud involving amounts totalling $345,000.
Gore was initially arrested on 14 April 2017 after being charged with fraud relating to obtaining funds from self-managed superannuation fund (SMSF) investors during 2013 and 2014.
ASIC’s case focussed on Mr Gore obtaining funds from SMSF investors through his role at Arion Financial Pty Ltd.
Investors were presented with information that they could invest in debentures, with various promises that included a guaranteed return, high returns, and that the funds could be returned after a short-term period of investment. 
Upon sentencing, Judge Byrne remarked that SMSF investors legitimately save and invest for their retirement and that it is an aggravating factor that these funds were being targeted.
Judge Byrne further noted deterrent sentences are necessary to reassure SMSF investors that those convicted of dishonestly dealing with their funds will be punished accordingly.
ASIC Commissioner Sean Hughes said ‘ASIC will continue to pursue criminal cases of fraud to take action against dishonest conduct especially where savings for retirement are at risk.’
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral of a prosecution brief by ASIC.
Prior to sentencing, Gore lodged an appeal for the earlier guilty verdict. No dates have been set for the appeal.
On 14 April 2017, Gore was arrested for allegedly defrauding between 2013 and 2014, five self-managed superannuation fund (SMSF) investors of approximately $800,000.
Gore also faces three charges of acting in the management of three corporations (MOGS Pty Ltd, Sleipner Financial Pty Ltd and Arion) while disqualified from doing so. 
Those matters did not form part of the fraud trial and will return to the Magistrates Court for mention on 27 November 2020. 
The charges of acting in the management of corporations whilst disqualified each carry a maximum penalty of one-year imprisonment or 50 penalty units.
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j.ballantyne1990-6AQqhLzZaK

Craig Gore sentenced to two years jail

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ASIC has obtained interim orders in the Federal Court of Australia against companies in the Mayfair 101 group and their director, James Peter Mawhinney, including the appointment of provisional liquidators to M101 Nominees Pty Ltd, the issuer of the M Core Fixed Income Notes promoted by Mayfair 101.
On 13 August 2020, the Court appointed Said Jahani and Philip Campbell-Wilson of Grant Thornton as provisional liquidators of M101 Nominees, pending an application by ASIC to wind up M101 Nominees on just and equitable grounds. ASIC alleges that M101 Nominees has been involved in breaches of the corporations legislation, and there is a justifiable lack of confidence in the conduct and management of its affairs that gives rise to a risk to the public that warrants protection.
In particular, ASIC alleges that M101 Nominees raised approximately $67 million from investors through debentures called the M Core Fixed Income Notes, based on representations that there would be security for the full amount invested. ASIC further alleges that those funds were not fully secured, and consequently, M Core Fixed Income Note investors may be unable to recover the full amount of their principal investment.
The provisional liquidators will provide a report to the Court by 24 September 2020 about the provisional liquidation of M101 Nominees, including identifying its assets and their value, and providing an opinion as to solvency and the likely return to creditors if the company is wound up.
On 13 August 2020, the Court made additional interim orders restraining Mr Mawhinney, and any company of which he is an officer or shareholder, from:
Receiving or soliciting funds in connection with any financial product; Advertising or promoting any financial product; and Removing from Australia any assets acquired with funds received in connection with any financial product.
These orders apply to all products currently offered by Mayfair 101, including the M Core Fixed Income Notes, the M+ Fixed Income Notes and Australian Property Bonds, as well as any other financial product.
The Court also restrained Mr Mawhinney from leaving Australia until further order.
The Court made interim orders restraining Sunseeker Holdings Pty Ltd, of which Mr Mawhinney is a director, from dealing with the units in 14 trusts which hold property at Mission Beach and Dunk Island in Queensland. The units in those trusts are part of the security held on behalf of investors in the M Core Fixed Income Notes.
ASIC’s investigation is ongoing.
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ASIC Investigation ongoing against Mayfair 101 director James Mawhinney

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Graeme Miller, a former financial adviser and director of Australian financial services licensee CFS Private Wealth Pty Ltd, was sentenced last month to six years’ imprisonment for misappropriating $1.865 million of client funds, following an ASIC investigation.
On 14 April 2020, Mr Miller pleaded guilty to six counts of engaging in dishonest conduct in the course of carrying on a financial services business, contrary to section 1041G of the Corporations Act 2001. The charges relate to ten clients from whom Mr Miller encouraged or facilitated the transfer of between $50,000 and $950,000 by way of an investment for the benefit of the client. Mr Miller then misappropriated those funds for his own purposes. Four counts relate to funds invested with Mr Miller through self-managed superannuation funds held by the clients.
Acting Judge Woods of the Downing Centre District Court sentenced Mr Miller to six years’ imprisonment, to be eligible for parole after serving four years.
In sentencing Mr Miller, Judge Woods described Mr Miller’s conduct as a “Ponzi scheme” involving a “significant breach of trust” and a “cruel and deceitful betrayal inevitably leading to financial disaster”.
Judge Woods also made reparation orders of approximately $1.777 million in favour of the ten clients who were the subject of the charges against Mr Miller.
Following the sentencing, ASIC Deputy Chair Daniel Crennan QC said Mr Miller has been found to have systematically breached the trust of his clients over a long period, resulting in significant losses.
‘As a financial adviser Mr Miller ought to have protected the interests of his clients. His sentencing should send a strong message that such conduct will lead to individuals involved being brought before the court to face criminal charges.’
The Commonwealth Director of Public Prosecutions prosecuted the matter after a referral from ASIC.
<h2>Background</h2>
Between July 2013 and April 2017, Mr Miller, of Myocum, New South Wales, advised his financial planning clients to invest funds with CFS Corporation Pty Ltd (CFS), of which he was also a director, on the basis that CFS would invest the money. Mr Miller did not invest the funds given to CFS by those clients, instead he used the funds for his own benefit and to meet business expenses, including payments made to other clients as dividend payments.
Of the $1.865 million of client funds that were misappropriated by Mr Miller:
<ul>
<li>$987,000 was transferred to bank accounts and credit cards held by Mr Miller and his family members;</li>
<li>$318,500 was used to pay dividends, interest or return of capital to other clients in relation to their investments with Mr Miller;</li>
<li>$135,000 was used to pay other personal and business expenses; and</li>
<li>$27,000 was withdrawn in cash or transferred overseas.</li>
</ul>
In January 2019, the Federal Court banned Mr Miller from providing financial services for 25 years, and disqualified him from managing corporations for three years (19-009MR).
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Former financial adviser Graeme Miller sentenced to six years’ imprisonment for dishonest conduct

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ASIC has successfully applied to the Federal Court of Australia for urgent interim orders against NSW-based PW Kitt Co Pty Ltd and its sole director Larry Dawson.
On 7 August 2020, ASIC obtained urgent interim orders:
<ul>
<li>to appoint receivers and managers to the property and assets of the defendants;</li>
<li>for the receivers to provide a report to the Court and ASIC within 42 days regarding the affairs of the defendants;</li>
<li>to stop the defendants from removing, dealing with or diminishing the value of property or assets, including funds in bank accounts held by the defendants; and</li>
<li>to restrain Mr Dawson from leaving Australia.</li>
</ul>
ASIC’s application was based on concerns that the defendants obtained almost $7 million in Australian investor funds by cold-calling Australian consumers and operating the websites smsfadvisory.com and pwkittco.com.
ASIC submitted to the Court that the defendants were using the same or substantially similar company and business names to an unrelated business SMSF Advisory Services Pty Ltd and P.W. Kitt &amp; Co.  
It is also alleged that the defendants used the Australian financial services (AFS) licence number of another company.  
ASIC remains concerned that the defendants appear to have no connection with those businesses and hold no licence or authority to deal in financial products or provide financial services.
Michael John Hill, Anthony Norman Connelly and Katherine Sozou of McGrathNicol have been appointed as receivers and managers to the property and assets of the defendants.
The receivers are required to report back to the Court concerning the affairs of the defendants by 18 September 2020.
Any person who is concerned that they have invested with the defendants or SMSF Advisory Services Pty Ltd should contact Patrick Cashman of McGrathNichol on (07) 3333 9800.
ASIC commenced this investigation as part of its response to the increase in financial scam activity arising during the COVID-19 pandemic. This action demonstrates ASIC’s readiness to take urgent action to protect vulnerable consumers in the current environment.
The matter will return before the Court on 27 August 2020. ASIC’s investigation is ongoing.
The case management hearing listed for 27 August 2020 has been adjourned to 10 September 2020.
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ASIC obtains interim injunctions against Larry Dawson and PW Kitt Co Pty Ltd

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ASIC has cancelled, or imposed conditions on, the registration of a number of auditors of self-managed superannuation funds (SMSFs) who had not maintained an appropriate level of audit experience.
Following a recent review, 36 SMSF auditor registrations have been cancelled and conditions have been imposed on a further six SMSF auditors.
All of the 42 SMSF auditors against whom ASIC acted had not issued any SMSF audit reports over the past five years and thus were not considered to have the necessary practical experience required to perform SMSF audits.
In relation to the six auditors who had conditions imposed on them, ASIC was satisfied that it would be an appropriate alternative to cancellation considering the auditor’s individual circumstances and other relevant (non-SMSF audit) experience. The various conditions imposed across these auditors were:
<ul>
<li>
Independent reviews – Having a number of audits reviewed by an independent SMSF auditor for compliance with auditing standards;</li>
<li>
Education – Completing specific courses of study, including in audit and fund compliance requirements under the Superannuation Industry (Supervision) Act 1993 (SIS Act) compliance; and</li>
<li>
ASIC exam – Sitting and passing ASIC’s SMSF auditor competency exam prior to issuing any SMSF audit reports.</li>
</ul>
From 1 July 2013, the SIS Act required all auditors of SMSFs to be registered with ASIC. This was to ensure that all SMSF auditors meet at least base standards of competency and expertise.
ASIC and the Australian Taxation Office (ATO) work closely together as co-regulators of SMSF auditors. The ATO monitors SMSF auditor conduct and may refer matters to ASIC for possible action in ASIC’s capacity as the review body that determines whether to disqualify an auditor or cancel or suspend their registration. ASIC may also impose conditions on an SMSF auditor.
Section 123E of the SIS Act allows the cancellation of the registration of an SMSF auditor who no longer has the practical experience required to perform SMSF audits.
Approved SMSF auditors seeking to cancel their registration voluntarily can do so through the ASIC Regulatory Portal.
Further information can be found on ASIC's website and in ASIC Regulatory Guide RG 243 Registration of self-managed superannuation fund auditors (RG 243).
SMSF trustees and members can check whether their auditor is registered, or whether a person has been disqualified, by searching ASIC's SMSF Auditor register.
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ASIC cancels registration of self-managed superannuation funds auditors

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ASIC has today commenced civil penalty proceedings in the Federal Court against Asgard Capital Management Limited for charging adviser fees to 404 customers for financial advice that was not provided and also against Asgard and BT Funds Management Limited (BT) for making misleading representations in half-yearly or annual account statements regarding the charging of the adviser fees.
ASIC alleges that from September 2014 to August 2017:
<ul>
<li>Asgard charged customers around $130,006 for financial advice after requests were made for customers’ financial advisers to be removed from their product accounts and after the advisers ceased providing advice;</li>
<li>In relation to superannuation products for which it is trustee, BT issued account statements which appeared to show that  adviser fees were no longer being charged  while the ‘adviser fee’ line item was removed from the account statement, an amount equal to that fee was added to the administration fee amount;</li>
<li>In relation to an investor directed portfolio service (IDPS) for which it is the issuer, Asgard issued account statements which appeared to show that adviser fees were no longer being charged  while the ‘adviser fee’ line item was removed from the account statement, an amount equal to that fee was added to the administration fee amount;</li>
<li>The wrongly charged fees were retained by Asgard as revenue; and</li>
<li>Asgard contravened its overarching obligations as an Australian financial services (AFS) license holder to act efficiently, honestly and fairly.</li>
</ul>
ASIC Deputy Chair Daniel Crennan QC said, ‘Today, ASIC has commenced a ‘fees for no service’ case against BT and Asgard as well as commencing a ‘fees for no service’ case against StatePlus Super. Both cases, which relate to superannuation, were subject to cases studies in the Royal Commission, were investigated by ASIC’s Office of Enforcement and have been brought by ASIC to the Federal Court for determination.’
ASIC is seeking declarations and pecuniary penalties from the Federal Court to prevent similar contraventions occurring in the future.
<h2>Download</h2>
Concise statement
Originating process 
<h2>Background</h2>
BT and Asgard are part of the Westpac Group. 
BT is the trustee and RSE licensee for:
<ul>
<li>Asgard Infinity eWRAP Pension Account;</li>
<li>Asgard Infinity eWRAP Super Account;</li>
<li>Asgard Open eWRAP Pension Account;</li>
<li>Asgard Open eWRAP Super Account;</li>
<li>Asgard Rollover Service;</li>
<li>Asgard Superannuation Account; and</li>
<li>Asgard Employee Superannuation Account (Super Funds). </li>
</ul>
Asgard is the custodian and administrator for the Super Funds, as well as the issuer and administrator for the Asgard Infinity eWRAP Investment Account (IDPS product). 
BT and Asgard’s conduct were the subject of a case study by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry – see Volume 2 (part 13) of the Final Report.
The Royal Commission found that between 2001 and August 2017, BT and Asgard charged around 767 members fees for financial product advice that was not provided. Between December 2017 and March 2018, Westpac remediated $634,490 to the members.
ASIC’s action is in respect of the conduct that occurred within the last six years, being within the limitation of the action period.
This is the fourth enforcement action commenced by ASIC concerning Fees for no service activity. In September 2018, ASIC commenced proceedings in the Federal Court of Australia against two entities in NAB’s wealth management division, NULIS Nominees (Australia) Limited (NULIS) and MLC Nominees Pty Ltd (MLC Nominees). The court proceedings relate to fees charged by both entities to a significant number of their superannuation members for services not provided. The hearing has concluded and judgment in these proceedings on liability and penalty has been reserved (18-259MR).
In December 2019, ASIC commenced civil penalty proceedings in the Federal Court against National Australia Bank Limited (NAB) for alleged contraventions of the ASIC Act and the Corporations Act for FFNS activity. These proceedings are being case managed by the court to trial, a date is yet to be scheduled (19-360MR).
In August 2020, ASIC commenced civil penalty proceedings in the Federal Court against State Super Financial Services Australia Limited (StatePlus) for charging at least 36,592 clients members fees for financial advice that was not provided (20-189MR).
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ASIC commences civil penalty proceedings against Asgard Capital Management 

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Former Sydney financial adviser, Sam Henderson, has pleaded guilty to one ‘rolled up’ charge of dishonest conduct, and two counts of making a disclosure document available to a person knowing it to be defective.
ASIC alleged that Mr Henderson, between 1 July 2010 and November 2017, whilst the chief executive officer, director and senior financial adviser of Henderson Maxwell, engaged in dishonest conduct when he made false representations that he had a Master of Commerce when he did not hold that qualification:
<ol type="1" start="1">
<li>in 115 PowerPoint presentations he gave to prospective clients from 2010 to 2016;</li>
<li>on the Henderson Maxwell website from October 2012 to August 2016; and</li>
<li>in Henderson Maxwell brochures distributed between 2013 and 2017 and in an Information Memorandum dated May 2011 (20-130MR).</li>
</ol>
Henderson Maxwell and Mr Henderson were the subjects of a bad advice case study in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry - see Volume 2 (p 242) of the Final Report.
In July 2019, ASIC banned Mr Henderson from providing financial services for a period of three years (19-190MR). It was found that Mr Henderson failed to act in the best interests of his clients, provide appropriate advice and prioritise his clients’ interests when providing personal financial advice.
A dishonest conduct offence under s1041G of the Corporations Act 2001 (Cth) carries a maximum penalty in the local court of two years’ imprisonment or a fine not exceeding 120 penalty units, or both.
ASIC also alleged Mr Henderson breached s952D(2)(a)(ii) in 2014 and 2016 by giving two clients a Financial Services Guide, containing the false representation that he held a Master of Commerce (Financial Planning).
Each defective disclosure offence under s952D(2)(a)(ii) Corporations Act carries a maximum penalty in the local court of 12 months’ imprisonment or a fine not exceeding 60 penalty units, or both.
In addition to the above, ASIC alleged that Mr Henderson made the false representation that he held a Master of Commerce in:
<ol>
<li>a book titled ‘One-Page Financial Plan: Everything you need to successfully manage your money and invest for wealth creation’ authored by Mr Henderson and published in 2013;</li>
<li>an interview conducted by a freelance writer, and a subsequent marketing profile prepared on Mr Henderson to promote the Sydney Graduate School of Management (SGSM) Master of Commerce (Financial Planning) course; and</li>
<li>some of Mr Henderson’s professional biographies and descriptions.</li>
</ol>
Mr Henderson will be sentenced in the Downing Centre Local Court on 13 October 2020.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions, following a referral of a brief of evidence from ASIC.
Moneysmart.gov.au has useful information for consumers about choosing a financial adviser, including how to complain about a financial adviser and what to do if their adviser is banned.
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Financial adviser Sam Henderson pleads guilty to dishonest conduct over his academic qualifications 

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ASIC has a advised it was aware that valuations of illiquid assets have been challenging as a result of increased economic and financial uncertainties due to the COVID-19 pandemic.
In this context, it is more important than ever that valuations of managed fund assets are regular, robust and reasonable, ASIC advised.
ASIC is reminding responsible entities of their obligation to ensure that valuations of their managed fund assets are regular and reasonably current having regard to the nature of the assets. One of ASIC’s focus areas this year is reviewing valuation practices amongst investment managers (see ASIC Interim Corporate Plan 2020-21, p14).
Accurate valuation of fund assets, including illiquid assets, is needed for a responsible entity to determine:
<ul>
<li>the value of the units of a scheme for performance measurement</li>
<li>the unit price to allow for investors to enter into and exit from a scheme</li>
<li>the price for the selling and buying of specific assets, including stakes in a company</li>
<li>the value of assets in financial reports required by the Corporations Act 2001.</li>
</ul>
Ensuring fund assets are valued regularly and valuation processes are robust are part of responsible entities’ statutory duties to:
<ul>
<li>exercise a reasonable degree of care of care and diligence</li>
<li>ensure scheme property is valued at regular intervals appropriate to the nature of the property</li>
<li>act in the best interest of members of the fund</li>
<li>carry on their financial services business efficiently, honestly and fairly.</li>
</ul>
During COVID-19, responsible entities may face issues such as a lack of comparable transactional data, and uncertainties around cash flow forecasts, the shape and timing of any economic rebound, the selection of an appropriate discount rate in an environment of very low government bond yields, and the risk premiums that should be attached to the risk free rate.
As a result, responsible entities may need to carry out valuations more often to ensure reliable asset values and member unit prices. Where valuations are uncertain for a material proportion of a fund’s assets, the responsible entity needs to consider whether it is in a position to establish a reliable unit price. If not, the responsible entity may need to temporarily suspend entry and exit from the fund.
While the COVID-19 pandemic continues to disrupt financial markets, ASIC encourages responsible entities to ensure:
<ul>
<li>valuations are reasonably current and regular</li>
<li>valuations are performed using appropriate methods and assumptions for that asset class</li>
<li>assets are promptly written down should the cash flows of an asset be negatively impacted directly or indirectly by COVID-19 restrictions</li>
<li>estimates are developed on a sound and reasonable basis, and that they consider whether past performance and historical inputs are still reflective of future outcomes</li>
<li>valuation polices are regularly reviewed by the responsible entities’ management and board</li>
<li>valuations are carried out by unbiased valuers and valuers are periodically rotated by the responsible entity.</li>
</ul>
Responsible entities should also ensure that they provide their members and investors with timely, full and fair disclosure of asset values. They should inform their members about the processes they are implementing to support the valuations given the current circumstances and uncertainties.
Accurate and timely valuation of assets is central to the fair and efficient operation of managed funds. ASIC is actively monitoring the valuation practices of responsible entities during this period of market disruption. ASIC may take regulatory action against responsible entities that do not comply with their obligations to provide fair and reasonable valuations of fund assets.
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Managed fund asset valuations must be reliable during COVID-19

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ASIC recently published Regulatory Guide 271 Internal Dispute Resolution (RG 271). The guide updates requirements for financial firms in dealing with consumer and small business complaints under their Internal Dispute Resolution (IDR) procedures.
Among other things, RG 271 clarifies ASIC’s expectations of financial firms in their dealings with paid representatives – including debt-management firms.
<h2>Debt-management firms and their role in dispute resolution</h2>
Debt-management firms promise to assist consumers in financial hardship. They offer a range of services such as debt negotiation and ‘cleaning’ or ‘fixing’ credit reports.
As part of their service offering to indebted consumers, these entities often lodge complaints with financial firms directly at the IDR stage and/or to an external dispute resolution (EDR) scheme such as the Australian Financial Complaints Authority (AFCA).
Debt-management firms operate on a for-profit basis and charges consumers fees for their services, either upfront or on a ‘success’ basis. Fees can be very high, and the services can sometimes leave consumers already in financial difficulty worse off.
Importantly, it is free for consumers to complain directly to their financial firm or to AFCA.
Financial firms, AFCA and consumer groups continue to raise concerns with ASIC about the conduct of debt-management firms and the potential harms these entities may cause consumers, including that they may provide unsuitable services and engage in predatory conduct.
<h2>When is it appropriate to not engage?</h2>
Responding to concerns from financial firms, ASIC has included guidance in RG 271 to clarify when we would consider it to be appropriate for a financial firm not to engage with a paid representative. This includes circumstances where a financial firm reasonably believes that a paid representative is not acting in the best interests of the consumer.
ASIC’s guidance also makes it clear that if AFCA has excluded a paid representative from representing a consumer in relation to a complaint under the AFCA Rules, this would also be an acceptable reason for a financial firm to no longer engage with the paid representative, for the duration of the exclusion period.
If financial firms cease to engage with a paid representative by relying on the updated guidance in RG 271, financial firms:
<ol type="a">
<li>should clearly explain to a consumer why contact is being made directly and provide reasonable time to respond; and</li>
<li>can continue to communicate with a consumer directly, even if the consumer still expresses an intention to retain the paid representative.</li>
</ol>
<h2>Paid representatives: ASIC’s guidance for financial firms</h2>
ASIC is currently considering technical updates to Regulatory Guide 96 Debt collection guideline: for collectors and creditors (RG 96), and intends an amendment to the section on ‘when a debtor is represented’ to ensure consistency with RG 271.
In the interim, financial firms can engage with paid representatives in a manner that is consistent with RG 271 and the approach set out in this article.
ASIC expects this article will provide financial firms with more clarity about how they can engage with paid representatives including debt management firms. We also support financial firms developing their own initiatives that help to protect consumers.
<h2>Background</h2>
There is no uniform regulatory framework applying to the activities of debt management firms in Australia. Most debt management firms are not required to hold an Australian credit licence or an Australian financial services licence to provide debt management services.
<h2>AFCA bans MCR Partners</h2>
On 1 July 2020, AFCA announced its decision to ban paid representative MCR Partners from lodging complaints on behalf of consumers and small businesses. The decision means that MCR Partners including its directors, employees or agents are excluded from lodging complaints with AFCA for a period of 15 months until 30 September 2021. 
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Handling complaints and paid representatives: ASIC provides financial firms with guidance

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Former financial adviser Brett Andrew Gordon has today appeared before the Maroochydore Magistrates Court charged with 10 counts of fraud to the total value of $975,600, following an ASIC investigation.
Mr Gordon, of the Sunshine Coast, Queensland, was the director of Refocus Financial Group Pty Ltd (Refocus) and Diverse Capital Management Pty Ltd (Diverse).
ASIC alleges that, between 2015 and 2017, Mr Gordon dishonestly caused a detriment to the trustees of six self-managed superannuation funds (SMSFs) by withdrawing a total of $502,000 from the SMSF bank accounts without authorisation. The trustees of these SMSFs were Mr Gordon’s clients.  
ASIC further alleges that, between 2016 and 2018, Mr Gordon dishonestly paid $473,600 in personal debts and expenses, as well as Refocus business expenses, from funds belonging to Diverse. Those funds had been invested by SMSF clients for the purpose of participating in property development activities to generate a return. 
The matter has been adjourned to 25 September 2020 for further mention in the Maroochydore Magistrates Court.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC.
In July 2018, the Supreme Court of Queensland made orders by consent, on the application of ASIC, winding up Refocus and restraining Mr Gordon from carrying on a financial services business without holding an Australian Financial Services (AFS) licence or being an authorised representative of an AFS licensee.
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