Gold Coast fund manager Investors Exchange Limited slapped with six-week suspension of its financial services licence

A Gold Coast funds manager headed by an aspiring brewer has been temporarily banned by the corporate regulator, less than a year after it lost a court case and was ordered to pay $66,000.

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A GOLD Coast funds manager headed by an aspiring brewer has been temporarily banned by the corporate regulator, less than a year after it lost a court case and was ordered to pay $66,000.

Investors Exchange Limited (IEL) was slapped with a six-week suspension of its Australian Financial Services licence from the Australian Securities and Investments Commission (ASIC) on February 5.

The funds manager is led by CEO Glenn Griffin.

The suspension, which started on January 15, came after it filed its annual financial statements late five years in a row and issued defective product disclosure statements among other breaches.

Screenshot from Investorsexchange.com.au

ASIC said IEL would now have time to “review its competence and take steps to ensure compliance with its obligations as an AFS licensee”.

Mr Griffin, who runs craft brewer Silver Fox Brew Co which uses hemp as an ingredient, did not respond to multiple requests for comment.

According to its website, Helensvale-based IEL has facilitated more than 190 loans worth $65 million in the past 10 years.

The ASIC penalty came after IEL lost a Supreme Court case held in Brisbane in March last year that cost the company $66,115.

IEL had applied to the court seeking orders to overturn a decision from the Australian Financial Complainants Authority (AFCA) that found in favour of IEL client Lornette Pty Ltd, which is the trustee for a superannuation fund.

Glenn Griffin is looking for investment into his craft brewery which uses hemp as an ingredient. Picture Glenn Hampson

Lornette complained to AFCA after it invested $140,000 into two of IEL’s property development projects and lost $132,230 in what the court said was a “financial disaster”.

AFCA found IEL had failed to comply with its own compliance plan when it did not obtain independent valuations of the properties, which it said caused the financial loss.

However, IEL failed to pay the $66,115 to the company and sought a declaration from the Supreme Court that the AFCA decision was invalid as it was outside its terms of reference.

In a judgment delivered on April 9 last year Justice Peter Applegarth found in favour of Lornette and AFCA awarding the $66,115 to the former and ordering IEL to pay costs for both respondents.

IEL had submitted that there was an adequate remedy for Lornette in the Magistrates Court. However, Justice Applegarth said that would involve more costs and delays for the company and be “inconsistent with the parties’ submissions to an alternative dispute resolution process”.

According to the Silver Fox Brew Co website, Mr Griffin is still seeking a suitable site for his brewery, which he intends to be operational by July 2021.

In 2017 he told News Corp that the idea of using hemp as an ingredient had been fermenting for months.

He said five test brews created were “very acceptable drinking” based on Mexican-style beers and a Belgian Witbier.

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