Ordered by the Federal Court of Australia
On 21 January 2022, Justice Anderson of the Federal Court ordered Mayfair Wealth Partners Pty Ltd to pay a penalty of $10 million, Online Investments Pty Ltd to pay a penalty of $4 million, and M101 Nominees Pty Ltd (in liq) and M101 Holdings Pty Ltd to pay a penalty of $8 million each, for making false or misleading representations to investors in the M+ Fixed Income Notes and M Core Fixed Income Notes (Notes) that:
The Notes were comparable to, and of similar risk profile to, bank term deposits, when the products exposed investors to significantly higher risk than bank term deposits;
The principal investment would be repaid in full on maturity, when investors might not receive capital repayments at maturity because Mayfair could extend the time for repayment for an indefinite period of time;
The Notes were specifically designed for investors seeking certainty and confidence in their investments and therefore carried no risk of default, when there was a risk that investors could lose some, or all, of their principal investment; and
The M Core Fixed Income Notes were fully secured financial products, when they were not.
During 2019 and 2020, M101 Nominees and M101 Holdings raised approximately $126 million from investors in the Notes. Redemptions have been frozen since March 2020, and interest payments have been frozen since June 2020. M101 Nominees is in liquidation.
The Court ordered Mayfair Wealth Partners, Online Investments and M101 Holdings to publish this Misconduct Alert.
Further information For further information, visit ASIC’s media release here.
See the Court’s judgment here