Mayfair 101 clarifies Corporations Act regarding ASIC ruling and seeks fair go
The Mayfair 101 Group, a leading income fixed investment specialist and a strong investor in Australian communities, and who has recently released a fixed income property bond to help propel investment in Mission Beach and Dunk Island, wishes to clarify the ASIC ruling made last week.
The Corporations Act sets out a clear test for determining whether a person is a wholesale client and it is up to accountants to make the determination. Mayfair 101 does not make that decision.
Furthermore, the wholesale investor test requires a potential investor to obtain a certificate from their accountant to confirm they satisfy specific criteria if they invest less than $500,000.
The constant criticism of Mayfair 101 for rebuilding Mission Beach and Dunk Island is bewildering. Mayfair 101 has settled over 130 properties in the Northern Queensland region and is actively engaged with the Mission Beach community and all levels of government to progress its significant development plans.
Those seeking to put the onus on Mayfair 101 and other wholesale-only investment groups to determine a client's level of sophistication are "passing the buck" on obligations that the Corporations Act clearly states sits with accountants and clients that sit within the wholesale investor definition.
"It is incorrect to suggest that it is Mayfair 101 or any other wholesale-only investment group's role to assess the level of sophistication of an investor. Instead we are required have disclosures in line with legislative provisions to a standard required for wholesale investors, which is a standard we have always met." James Mawhinney, managing director, Mayfair 101, says.
"Mayfair 101 religiously qualify our investors to ensure they meet the wholesale investor requirements, including obtaining an accountant certificate if their investment amount is under $500,000. It is not a test for Mayfair 101 to decide the level of sophistication of investors, but for accountants to apply the test appropriately and for clients to determine of their own accord whether the products are the right fit for them.
"We have had numerous clients write to us in support of this fact and even suggest that ASIC's allegations are questioning their intelligence given they have clearly read and understood the risks prior to investing.
"It is up to the Commonwealth Government to change the law if ASIC or accountants consider that such a change is necessary. Singling out Mayfair 101 and expecting us to follow aspirational laws rather than actual legislation is unreasonable and unjust. We deserve a fair go."
