Queensland company Penta Capital Pty Ltd has agreed to pay $53,280 to comply with four infringement notices issued by the Australian Securities and Investments Commission (ASIC).
ASIC alleges that Penta Capital made a number of false and misleading statements on its website.
Between May 2022 and February 2023, Penta Capital’s website included the following statements that ASIC alleges are misleading:
- managed $6.9 billion on behalf of retail, wholesale and institutional investors;
- had $350 million in assets under management;
- was in operation for 25 years, between 1997 and 2022, and
- was sponsored or endorsed by or otherwise associated with the Financial Services Council, the Australian Investment Council, the Property Council of Australia and the Australian Investment Council.
ASIC alleges that these statements were misleading because Penta Capital did not manage any assets on behalf of retail, wholesale or institutional clients, held no assets under management and had only been in operation since around 5 May 2022.
ASIC further alleges that Penta Capital had no sponsorships, approvals or partnerships from the Financial Services Council, the Australian Investment Council, the Property Council of Australia and the Australian Investment Council.
Penta Capital paid its first installment of breach notices on December 22, 2023.
If Penta fails to pay the remaining installments, ASIC may investigate further and bring civil penalty proceedings.
Payment of an infringement notice is not an admission of liability.
Penta Capital is not an Australian licensee or authorized representative, but its related entities Penta Asset Management Pty Ltd and SEQ Asset Management Pty Ltd were authorized representatives of AFS beneficiary Avalon Funds Management Limited between 1 September 2022 and 19 April 2023. Avalon Funds Management is not subject to investigation by ASIC.