Background

This Current Matter page contains updates for people with complaints in relation to financial advice licensee United Global Capital Pty Ltd (in liquidation) (UGC).

The Australian Securities Investments Commission (ASIC) has obtained interim Federal Court asset-freezing orders against UGC and related property investment company Global Capital Property Fund Limited (GCPF).

ASIC has also made certain interim stop orders and registered its cancellation of UGC’s Australian Financial Services Licence. In cancelling UGC’s licence, ASIC requires it to remain a member of the AFCA scheme until at least 31 May 2025. Provided AFCA has jurisdiction to consider a complaint, AFCA can accept complaints about UGC while the firm remains a current member.

For ASIC updates about UGC, please visit here.

On 5 July 2024, UGC was placed into voluntary administration, and on 9 August 2024, UGC entered liquidation.

UGC in liquidation

On 9 August 2024 UGC entered liquidation. This means an external party is now managing the company. If complainants and other creditors wish to lodge a proof of debt in the liquidation, and for any enquiries about the insolvency process, please contact the appointed liquidator:

SV Partners
Olivia McMahon
22 Market Street
Brisbane QLD 4000

Contact number: 07 3310 2045

Facsimile: 07 3229 7285
Email: olivia.mcmahon@svp.com.au

Status of complaints to AFCA about UGC

As UGC is now in liquidation, and there is no certainty it would be able to comply with any AFCA determinations requiring it to pay compensation to complainants, AFCA needs to consider whether complaints submitted to AFCA are within the scope of the Compensation Scheme of Last Resort (CSLR).

The scope of the CSLR depends on the individual circumstances of the advice and services a complainant was given, whether AFCA has jurisdiction to consider the complaint, and whether the complaint falls within the scope of the CSLR as set out in legislation.

If a complaint falls within AFCA’s jurisdiction and is likely to be in-scope for the CSLR, AFCA will consider the complaint further. If the complaint is not likely to be within the scope of the CSLR, AFCA will decide whether it should continue to consider the complaint.

Compensation Scheme of Last Resort

The Compensation Scheme of Last Resort (CSLR) can provide compensation for eligible consumers who have an in-scope AFCA determination in their favour, that remains unpaid by the financial firm.

The CSLR is a separate and independently-run organisation. You can read more about the CSLR on its website.

What can I do to prepare for my complaint to be investigated?

If you have already lodged a complaint with AFCA, we will be in touch with you when your case is allocated for investigation. There is no need to contact us, but there are things you can do in the meantime to get ready.

Please gather relevant information in preparation for contact from us, to help our case workers efficiently deal with your complaint once they begin investigation. Information we typically request includes:

• SMSF Trust Deed and investment strategy
• Correspondence (including emails, letters etc) received from UGC or its representatives in relation to investment recommendations
• Financial Services Guide, Statements of Advice, Records of Advice and any other advice documents provided by UGC, such as copies of Fact Finds and Risk Profile
• Product Disclosure Statements, prospectuses and any information memorandum received from UGC or GCPF
• SMSF financial statements and portfolio reports available from when you became a client of UGC, and to date
• A copy of your latest portfolio holdings (if applicable)
• Investment confirmations and other transaction records
• Any retainer or service agreement with UGC
• Cash management account statements, and
• Other information about your SMSF, including ABN numbers.

We are working through the complaints received about UGC. It will take time for us to contact you, as we work through each complaint with the care and rigour that is required. Having this information ready for when we contact you will help us in reviewing complaints as quickly as we can.

Lodging a complaint with AFCA

Consumers who wish to lodge a complaint about a financial firm that is a current AFCA member can do so here or calling 1800 931 678.

Other help

The National Debt Helpline offers free, independent and confidential assistance for people in financial hardship. You can visit their website or call them on 1800 007 007.

If you are feeling distressed

Visit Beyond Blue’s website or contact them on 1300 22 4636.

Lifeline is available via this website or on 13 11 14.