BFCSA Blog

  Former Stingers and Underbelly actor Peter Phelps says his financial future is in ruins after claiming to have fallen victim to disgraced Queensland investment adviser Brad Sherwin. The Australian actor, who currently appears in the Network Ten series Wonderland, has claimed his 35 years' worth of superannuation - more than $400,000 - was "stolen" by former financial adviser Brad Sherwin, who chaired the now-defunct Wickham Securities. "Superannuation stolen by bankrupt 'financial adviser' Brad Sherwin," Phelps wrote on Facebook on Tuesday. "Was property investing super ... [and] the **** frauds us. "Kids future. Farm. Gone." More than 300 self-funded retirees lost up to $27 million after investing with Mr Sherwin's company Wickham Securities - a mortgage finance lender providing funds for borrowers buying or refinancing commercial property. Mr Sherwin ran Brisbane-based Wickham Securities with his brother-in-law Peter Siemons.   Wickham collapsed in December 2012, owing millions to investors. Related entities, including DIY Superannuation Service and Sherwin Financial Planners, went bust a month later, owing...

Xenophon and Labor extend olive branch to Cormann GARETH HUTCHENS 21 Nov, 2014   http://www.farmonline.com.au/news/metro/national/general/xenophon-and-labor-extend-olive-branch-to-cormann/2717926.aspx   The Labor Party and independent senator Nick Xenophon say they are willing to extend an olive branch to Finance Minister Mathias Cormann after they successfully disallowed his controversial financial advice regulations in the senate this week. A so-called "coalition of common sense" comprising Labor, Greens, independent and other cross bench senators voted on Wednesday night to disallow the Abbott government's Future of Financial Advice regulations in the senate. The move took the government by surprise and means the industry will now have to return to the former Labor government's Future of Financial Advice laws. In response, Mr Cormann issued a formal statement saying he did not plan to give up on his reforms and he still wanted to pursue the matter through the senate. "The government will continue to progress its substantive FOFA legislation giving...

 White Collar Criminals have to be rounded up and jailed.  NO THEY ARE NOT TOO BIG TO JAIL!!!!!

 Check Mate?

Why and how property values have been decimated to favour banks, real estate agents and government.

                                                                                                                               

How can property be worth less than it was 10 years earlier when  we have inflation constantly running on average around 3.5% per year?   SOMEONE IS CHEATING as Alan Jones roared on 2 GB.     Bankers at the highest level need to face A ROYAL COMMISSION!!!

SPEAK UP!

My property was valued in 2005 for $750,000. Today almost 10 years later I cannot sell it for $750,000. Why! Because that’s all my real estate agent says a buyer will pay and because that’s all my bank will value at approximately based on recent sales. Because the majority of people do not have the money to buy it, or the confidence to invest when they see markets collapse which does not encourage them to buy. Because the majority of people do not trust the people in power , power brokers or the corrupt system we are led to follow like lambs to the slaughter.                                            

Inflation is based on the price of goods and service increasing over a twelve month period of time. The price of food ,clothing, motor vehicles, building materials, land, labour, taxes, council rates , insurances ,electricity, transport etc. You name it. Inflation being the cost of living does not get less.           Because of inflation the value of your savings has less purchasing value. When you purchase something you do not get more, you get less for your money.

 Don’t believe or trust what government or statistics want you to believe.                                                                                                                             For any self employed person or business when you get hit with rising costs you either wear it or work longer  or cut costs to compensate, or you simply pass on the cost increases to the next person. 

"Shortcomings?"  More like criminala mctivity to me.  If it quacks like a duck then its a Mackers Special McMess...............Time for Royal Commission into Banks and ASIC.........................time for industry whistle blowers to come forward - we respect confidentiality!  Call me.   http://www.afr.com/p/national/inside_story_the_mess_macquarie_oOjQYHe2QuY5ApRUJNX7mL Inside story | The mess Macquarie made PUBLISHED: 16 Feb 2013 John Kehoe and Sarah Thompson   It seemed harmless enough at the time. Stockbrokers at Macquarie Group’s personal investment advisory business had been sloppy with their paperwork so the records of their dealings with private clients were far from best practice.  So harmless that Macquarie – including its head of banking and financial services, Peter Maher – didn’t see the need to draw the shortcomings to the attention of the Australian Securities and Investments Commission after they were first detected in 2008. Management believed the issues could be quietly dealt with behind closed doors and without the prying attention...

http://www.lawyersweekly.com.au/news/give-more-ammunition-to-asic-costello Give more ammunition to ASIC: Costello 13 March, 2007 CORPORATE WRONGDOING may attract civil sanctions and higher penalties under a discussion paper released by the Treasury last week into corporate law reform.  The paper accords with a wider governmental strategy to explore ways of reducing regulatory burdens and simplify existing laws.   One proposal discusses the expansion of civil sanctions in corporate law to add more firepower to those policing dubious corporate behaviour, along with the possibility of increased penalties. The review is intended to strike a balance between the need to have strong sanctions that deter and punish corporate wrongdoing and protect the market’s integrity, as well as foster a competitive business environment.  In a speech given to the Australian Securities and Investments Commission (ASIC) summer school, Treasurer Peter Costello praised the strong record of the regulatory body. “ASIC’s enforcement record is a great testament to the assiduous work of...

http://www.smh.com.au/business/explosive-claims-on-jp-morgan-conduct-20140525-38wq6.html Explosive claims on JP Morgan conduct BusinessBanking and Finance Michael West Date May 26, 2014 A technical support person who worked for JP Morgan in Australia claims the bank regularly misled its New York parent and the US Federal Reserve by failing to report losing trades.  The explosive allegations are contained in a submission by the person to the Senate inquiry into the performance of the Australian Securities and Investments Commission. BusinessDay has met the person and agreed to allow him to remain anonymous. He appears to be credible.  The person complained to ASIC and later went to work for the regulator, but he said the regulator failed to investigate his claims.  A spokesman for JP Morgan denied the allegations. "The claims are false and misleading," he said.  In his submission, published by the inquiry, the person said he was employed at the Sydney office of JP Morgan between 2004...

Gladys - our intrepid researcher has found these gems  We suggest all victims of LOW DOC LENDING and TOXIC MORTGAGES, broaden your knowledge of FOS................................32,000 complaints per year show that these TOXIC fraudulent, unaffordable (implode in 5 years) 30 year loans have been going on for over a decade, and continue to do so.  Had proper action been taken by ASIC against the BANKS involved, FOS would be back to handling 70 complaints per year!  Now FOS is busy trying to invent ways to fast-track complaints and find excuses to close files.  Like the BLANK FORM SCAM.  No-one signed blank forms...............its a magician's trick!!!  Three pages are pre-filled in - standard industry practice.  We collectively KNOW THAT to be true.  You need to join BFCSA to find out how to watch out for Banker/FOS tricks. Is FOS' "ethics" slipping due to being swamped with complaints?  Without BFCSA's collective knowledge no-one in...

FOS complains members aren’t paying their determinations:  One Third of determinations not met by the Banks. 9 April, 2014 Jason Spits 0 comments  The Financial Ombudsman Services (FOS) has stated that the failure of some FOS members to pay determinations is “emerging as a structural issue in our investments jurisdiction” after more than $8.3 million is still to be paid to consumers.  FOS Chief Ombudsman Shane Tregellis said the figure related to 18 financial services providers who have not complied with determinations made against them by FOS during the period from 1 January 2010 to 1 January 2014.  Tregellis said while the failure to pay determinations involved a small minority of the 4900 FOS members, the $8.3 million represented a third of all determinations made in FOS’ investments jurisdiction.  The $8.3 million is owed to 99 applicants to FOS, with all the unpaid determinations - except one - involving financial advisers. FOS is required...

FBAA slams LMI insurers for non-disclosure   by Calida Smylie | 15 Apr 2014  AUSTRALIAN BROKER NEWS The Finance Brokers Association of Australia believes there is a need for greater transparency and disclosure on behalf of lenders and Lenders Mortgage Insurance insurers to make sure consumers are not being ripped off by having to pay LMI. The Reserve Bank of Australia estimates more than one quarter of housing loans in Australia are subject to LMI.  In the financial year ending 30 June 2013, banks made an estimated 761,880 home loans, totalling $247.9 billion in lending, which indicates around 190,470 loans created in that financial year were subject to LMI. But FBAA said in its submission to the financial services inquiry that there are many issues surrounding LMI, including consumers not being provided with LMI product disclosure statements, including any details regarding any commissions payable to the lender. “Privity of contract is the...

Big company bias has rigged financial advice system, advisor tells Murray inquiry Banking and Finance  Date  April 8, 2014 An AMP-linked adviser has warned the financial advice system is rigged against consumers because big companies have a bias towards pushing their own products.  This bias towards in-house products reduces competition and may result in savers paying over the odds for investment products, Rhys Wood, a director of financial planning at Elite Wealth Solutions, has argued.  In a damaging submission to the Murray Inquiry into Australia's financial system, Mr Wood says that the high costs of regulatory compliance have prompted many planners to obtain a practicing licence through a large institution, which in turn supplies products for advisers to recommend. Queensland-based Elite Wealth Solutions is licensed by listed wealth company AMP.  "The most pressing issue within the advice industry is the existence of bias within the advice process," says Mr Wood in...

http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/asic/asic052/~/media/Committees/Senate/committee/corporations_ctte/asic/asic_05_2/e04.ashx In late 2004 and early 2005, ASIC undertook a surveillance looking at whether advisers were complying with their obligations to disclose, in the Statement of Advice (SOA) given to clients, the costs, possible loss of benefits and other significant consequences of following advice to switch super funds.  During this surveillance, ASIC uncovered some cases where the interests of clients were harmed by poor advice. PURPOSE OF THIS REPORT The purpose of this report is twofold: •  to explain the methodology behind the surveillance; and •  to illustrate the results of the surveillance in simple language. PROJECT METHODOLOGY ASIC started surveillance on superannuation switching advice in December 2004 to assess how financial advisers were, at that time, complying with new legal obligations relating to advice to switch superannuation products. ASIC’s surveillance sample included 19 AFS licensees and 93 representatives of those licensees. Initially, ASIC reviewed 101 client files in which personal...

ASIC silent on possible Macquarie whistleblower   ASIC deputy chair Peter Kell. 24 Feb 2014     http://www.financialobserver.com.au/articles/asic-silent-on-possible-macquarie-whistleblower By Kate Kachor  8  21     Related Articles: Macquarie rebuilding wealth division | Macquarie advisers caught out, wealth unit under review |     Senior members of the corporate regulator have refused to provide details about the possible existence of an informant within Macquarie Bank’s wealth management division. ASIC representatives, including chair Greg Medcraft and deputy chair Peter Kell, last week offered scant detail to a Senate committee in response to how issues within Macquarie Equities Limited (MEL) came to their attention.Macquarie’s banking and wealth division came under siege last year when MEL agreed to an enforceable undertaking (EU) with the regulator.The EU followed a nine-month ASIC investigation that uncovered a number of recurring compliance deficiencies “by and in the supervision of MEL’s advisers”.In response to a direct question on whether an informant tipped off ASIC about the “problems...

Bank bashing culture unfair: Lending manager Australian Broker News http://www.brokernews.com.au/news/breaking-news/bank-bashing-culture-unfair-lending-manager-182455.aspx by Amy Rosenfeld | 17 Dec 2013   A bank employee has hit back at the Australian "culture of bank bashing” following accusations ASIC is not doing enough to stamp out fraud in lending institutions.Last week, Australian Brokerreported ASIC has vowed to crack down on fraudulent brokers, and is currently investigating 20 cases of mortgage fraud.Many readers strongly supported the move from ASIC to take down the “rogues” in the industry, but highlighted an apparent disparity between ASIC’s stance regarding fraud in lending institutions compared to fraud in brokerages.The lending manager, who wished to remain anonymous, toldAustralian Broker banks have become an easy target for brokers.“I think Australia has a culture of bank bashing, we’re kind of like a favourite target – it’s politicians and bankers. Brokers have their own culture and will say ‘don’t deal with the bank, deal with us’, but at the end of...

The Industry & Regulatory Maggots involved and profiting from Mortgage Low Doc  Loan Fraud & dastardly Reverse Mortgages would try and have you believe the key issue is:  that borrowers and brokers are in fact altering 2.7 million loan application forms. The key issue according to our courts is NOT presenting an application form to the banks.  The key issue is THE APPROVAL. THE TRUTH IS: The Courts have already ruled the BANKERS are the culprits and THEY ARE responsible for APPROVING the dud documents. Even if the borrowers and/ or broker agents exaggerated the income on the LAFs, (which they did not in most cases), 2.7 million fraudulent LAFS were approved by Major Banks (85% of the market share of Low Docs). These Bankers approved these toxic loans aided by a computer approval process and a service calculator, geared to fudge incoem figures to increase VOLUME in lending to benefit the Banks.   AND THAT...

ASIC claim the emails I gave to their executives are "merely marketing by banks."  Dear Reader, I invite you to be judge and jury.  I have over 2000 emails between various Bank BDMs and Middle Management to Broker Channel - all brokers all states in Australia. In February 2013 I travelled 400km round trip to deliver to ASIC Commissioner a PACK OF 200 emails.  I placed all of these documents into my storage files in PDF form. I then placed them on to this website for the world to READ.  ASIC had their crack team of five investigators pour over these documents, including the SERVICE CALCULATOR FORMS and ICW worksheets.  ASIC kept these documents for 4 months.  I then travelled same distance to ask ASIC to hand back my originals.  These are in a SEALED PACK.  I have not opened the PACK - its in a safe house - waiting for...

From a reader:  Perhaps the glutton driven banksters could donate their illegally obtained wealth to some of the charity organisations that have been helping my family since RHG scammed me.  The Salvation Army are an amazing volunteer organisation that have helped my family with food vouchers and emotional support through this daily prison I am trapped in over the last few years!!! I will never be able to accept the greed element of this scam?!?  I cannot believe the Government has sat on its hands and worried about far less important things when ordinary aussie battlers have been lured by BIG BANKS into fraudulent Low Doc Loans. $50 billion - is that true?   So its not a problem?  ONLY $50 Billion worth of dud mortgages?!?  Yes we hung on for 5 years and slowly were strangled and running backwards, our dreams shattered and my kids saying what happens next Mummy? I am about...

DEFRAUDED TRUSTEE LODGES ASIC COMPLAINT   Written by Richard Mayo Thursday, 12 December 2013    An SMSF trustee who lost $110,000 in the collapse of Trio Capital has written to the Senate complaining about the corporate regulator’s failure to prevent the fraud. In a formal submission to the Senate inquiry into the performance of ASIC, Mrs Kay Gal said the money from her SMSF had been invested through Tarrants Financial Services, a Wollongong-based financial planning firm now in liquidation. “As a victim of the Trio Capital fraud we were under the impression that ASIC were the financial regulators and were [supposed] to create confidence in the marketplace,” Ms Gal wrote in the submission. “Giving a licence to an alleged fraudster to handle Australian superannuation money betrayed our confidence,” she added. “We respectfully request your intervention and assistance in granting us compensation for the money that was stolen.” In April 2011, the government announced...