Company alleged to have made false and misleading statements
Queensland-based company Penta Capital Pty Ltd has agreed to pay $53,280 in fines to comply with four infringement notices issued by the Australian Securities and Investments Commission.
ASIC alleges that Penta Capital made a series of false and misleading statements on its website between May 2022 and February 2023.
ASIC’s allegations
ASIC alleges that Penta Capital's website included several misleading statements during the specified period. These statements include:
- Penta Capital claimed to manage $6.9 billion on behalf of retail, wholesale, and institutional investors
- Penta Capital stated that it held $350 million in assets under management
- Penta Capital claimed to have been in operation for 25 years, between 1997 and 2022.
- Penta Capital asserted that it had received sponsorship, approval, or affiliation with various organisations, including the Financial Services Council, Australian Investment Council, Property Council Australia, and Australian Investment Council
ASIC alleges that these statements were misleading because Penta Capital did not manage any assets on behalf of clients, had no assets under management, and had only been in operation since around 5 May 2022.
Lack of sponsorships, approvals, or affiliations
ASIC also alleges that Penta Capital did not have any sponsorships, approvals, or affiliations with the Financial Services Council, Australian Investment Council, Property Council Australia, or Australian Investment Council, as claimed on their website.
Payment and potential consequences
Penta Capital made its first instalment payment towards the infringement notices on 22 December. However, if Penta Capital fails to pay the remaining instalments, ASIC may further investigate the matter and potentially file civil penalty proceedings.
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It is important to note that payment of an infringement notice is not an admission of liability The specific reasons for ASIC's concerns will be outlined in the infringement notices, which will be published on the Credit and ASIC Act infringements notices register once all instalments have been paid.
Penta Capital is not an Australian financial services licensee or authorised representative. However, associated entities Penta Asset Management Pty Ltd and SEQ Asset Management Pty Ltd were authorized representatives of AFS licensee Avalon Funds Management Limited between 1 September 2022 and 19 April 2023. Avalon Funds Management Limited is not the subject of investigation by ASIC.
Other recent ASIC actions
In other news, ASIC recently disqualified Canberra developers Jamie Charles Farrelly and Gary James Kelly from managing corporations for two years due to their involvement in four failed companies. The regulator also recently issued a permanent ban that bars a Gold Coast financial advisor from providing any financial services, controlling a company that provides financial services, or performing any function involved in the carrying on of a financial services business.
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