The Australian Securities and Investments Commission (ASIC) will be pursuing their first case in the Federal Court under the conflicted remuneration provisions with proceedings against RM Capital and the SMSF Club.
The regulator noted that the proceedings were connected to the acceptance of conflicted remuneration.
The regulator claims both the SMSF Club and RM Capital contravened the law 259 times each and that each contravention potentially attracts a penalty of up to $1 million, which means both entities could be fined up to $259 million each.
ASIC will allege that the SMSF Club encouraged clients to use their SMSF to purchase property sold by Positive RealEstate and that this was done by referral with the knowledge RM Capital. The offences are alleged to have taken place between December 2013 and July 2016.
The regulator will further allege that each time a client used their SMSF to buy property, the SMSF Club got paid $5000 by the realty company—a total of $730,000 in conflicted remuneration.