Sovereign director Michael Grochowski banned by ASIC for breach of financial services laws while investing clients’ monies in property fund
ASIC has banned Michael Grochowski of Hampton, Victoria, from providing financial services for four years in relation to his conduct as a director and officer of Sovereign MF Limited.
Sovereign MF Limited invested in property assets on behalf of mum and dad investors and self-managed superannuation funds.
Grochowski was a director and officer of Sovereign MF Limited from May 12, 2003 until his resignation in March 2010.
Sovereign holds an Australian Financial Services (AFS) licence, which authorises it to operate registered managed investment schemes, including The Sovereign Aged Care Property Fund, whose purpose is to invest retail clients’ money into real property investments.
ASIC found Grochowski did not comply with financial services laws by failing to ensure all the assets of the fund were properly identified and registered as assets of the fund, resulting in the loss of property assets of the fund.
He also did not remedy defective disclosure documents for the fund, such that the documents did not contain information about a material change to circumstances affecting property assets of the fund.
ASIC found he did not provide members of the fund with timely ongoing disclosure about material changes to circumstances affecting property assets of the fund, and the watchdog also said he did not lodge annual financial reports for Sovereign and the fund.
ASIC also found Grochowski’s conduct as an officer of the company between December 2006 and March 2010 demonstrated a lack of understanding of the obligations imposed on AFS licensees.
Grochowski has the right to appeal to the Administrative Appeals Tribunal to seek a review of ASIC’s decision.
The Mark at Sydney's Central Park
The best of everything at Portside Wharf
No matter how high the population growth rate, it won’t create capital growth if developers generate an over-supply.
Brought to you by: Caydon
Atria Apartments in Hawthorn offers buyers an opportunity to invest in one of Melbourne’s finest suburbs.
Solly Lew's cash register rings to the tune of $1.7 billion estimated worth in 2013 BRW Rich 200 list