05-167 Another wealth creation spruiker caught out
Wednesday 22 June 2005
The Australian Securities and Investments Commission (ASIC) has successfully brought legal proceedings against a wealth creation promoter operating nationally.
21st Century Academy Pty Ltd (21st Century Academy) and Mr Jamie McIntyre have been ordered by the Federal Court of Australia to stop or change the way they arrange, promote and hold live seminars in Australia.
In making final orders the Federal Court declared that 21st Century Academy had contravened the Corporations Act 2001 (the Act) in that it had carried on a financial services business without holding an Australian financial services licence (AFSL).
The Executive Director of Enforcement at ASIC, Ms Jan Redfern said the Federal Court’s action should remind consumers that it is important to check the credentials of people providing financial advice.
‘The law seeks to protect consumers from unqualified people who often provide misleading advice about their expertise and skills, repeatedly making far-fetched promises and guaranteeing personal wealth. For their own sake, consumers should be wary of such promises and always ensure they obtain financial advice from licensed professionals’, Ms Redfern said.
The Court found that 21st Century Academy had provided financial product advice, by arranging, promoting and holding live seminars in Australia to members of the public at which Mr McIntyre spoke about certain strategies involving shares and derivatives. Furthermore, the Court found 21st Century Academy had breached this provision by publishing and promoting a book entitled ‘What I didn’t learn at school but wish I had’. This book contained financial product advice with respect to securities and derivatives.
In relation to Mr McIntyre, the Court declared that he was knowingly concerned in the contraventions of the Act committed by 21st Century Academy. The Court also declared that Mr McIntyre had contravened the Act in that he had provided financial product advice, on behalf of 21st Century Academy, without being authorised to do so by the holder of an AFSL.
ASIC alleged that 21st Century Academy and Mr Jamie McIntyre had acted in contravention of the Act from 11 March 2002 to 31 December 2004.
As a consequence, the Court granted injunctions to restrain 21st Century Academy and Mr McIntyre from:
- arranging, promoting and holding live seminars in Australia at which advice or recommendations are given in connection with securities and derivatives (including blue-chip shares and exchange traded options) unless that advice is given by the holder of an AFSL or by the authorised representative of an AFSL holder, covering the provision of such advice;
- printing, publishing and distributing written material that promotes and advertises live seminars at which advice or recommendations are given in connection with securities and derivatives, unless that advice is given by the holder of an AFSL, or the authorised representative of an AFSL holder, covering the provision of that advice; and
- printing, publishing and distributing the book ‘What I Didn’t Learn At School But Wish I Had’ (in the form as reprinted in March 2004).
Additionally, the Court ordered 21st Century Academy and Mr McIntyre to pay ASIC’s costs.
‘Entities associated with Mr McIntyre and 21st Century Academy hold live seminars outside Australia, and in the past these seminars have been conducted in New Zealand and Fiji. While these seminars may be advertised in Australia, consumers should note that they fall outside ASIC’s jurisdiction’, Ms Redfern warned.
Background
21st Century Academy promotes, advertises and conducts a business of holding wealth creation seminars. These seminars, and related materials, purport to teach people ‘how to excel in the 21st century and make money while you sleep’. Mr McIntyre is described as ‘the founder and head facilitator of the Academy, …a self-made millionaire and an inspiration to thousands’.
ASIC secured interlocutory undertakings from 21st Century Academy and Mr McIntyre on 5 April 2005 to restrain this conduct, pending the Court’s final decision.
End of release
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