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ADVOCACY CASE STUDIES
Financial Advice Issue
Sixteen of our clients applied to invest $199,000 for a unit in an unregistered managed investment scheme in Western Australia. However, because the total number of scheme members exceeded 20 it should have been registered and a Product Disclosure Statement (PDS) issued as well. Investors were never provided with their units in the property scheme, which we allege is a Ponzi scheme.
Actions Taken to Assist & Result Achieved
As our claims against the Australian Financial Services (AFS) Licence holder were successful, compensation was ultimately awarded for three clients through the Compensation Scheme of Last Resort. However, the AFS Licence holder declared insolvency meaning the AFCA predecessor scheme, the Financial Ombudsman Service (FOS) could no longer consider the remaining complaints. We are currently lobbying to achieve compensation for the remaining clients.