Kalkine launches a new business while regulators examine its conduct

Kalkine has launched a new operation after ASIC opened a file into the conduct of its main business.

Kalkine chief Kunal Sawhney, wearing sunglasses, and staff in India at the company's 2020 party.

Australian investment information firm Kalkine has switched its sales strategy in the wake of allegations of predatory behaviour and regulatory scrutiny, with the launch of a new business offering a similar service but under a different name.

SivaStatz, also known as Sivadata, claims that despite providing broker recommendations on Australian equities, “no advice or recommendations on investments or trading are made nor implied on this website”.

SivaStatz, which Kalkine sources say came online recently, has started calling Kalkine’s current and former clients in a bid to drum up new business for the Indian-Australian operation.

Unlike Kalkine, the new business is operating without a financial services licence.

Kalkine, which is headquartered in Sydney but largely operates out of an office in Noida, close to the Indian capital of Delhi, has faced growing scrutiny after The Australian revealed its sales practices and allegations the firm’s representatives were providing financial advice.

The Australian reported that Kalkine’s representatives were allegedly encouraging its subscribers to churn their investment portfolios, selling blue-chip stocks in favour of speculative investments which resulted in many losing thousands of dollars.

Kalkine chief Kunal Sawhney, centre, with staff in India.

Kalkine is licensed under its AFSL to provide financial advice of a general nature, but phone calls to clients, heard by The Australian, suggest representatives encouraged clients to buy and sell specific stocks, providing advice of a specific nature.

Sivadata notes it “is not in the business of providing personal advice”.

“Nothing contained in this website is intended to be, nor shall it be construed as, advice or recommendation,” it says.

Sivastatz also provides subscribers basic market information on Australian equities “powered by licensed source”.

The connection between Kalkine and Sivastatz is buried in the new firm’s website. Its terms and conditions note it and its related companies “may use your personal information for the purposes of marketing our services or to inform you of new services, promotions, or events that we believe you may be interested in”.

For $499 a month, subscribers can receive broker consensus positions on Australian equities, it says.

However, Kalkine would not comment on where it sources its broker consensus positions or if the firm had been licensed to share them.

The latest move by Kalkine comes as it faces regulatory review and the Australian Securities and Investments Commission opening a file into the company.

ASIC was questioned about Kalkine in federal parliament. Senator Andrew Bragg sought information from the regulator about its inquiries into the business.

The regulator told Mr Bragg it was “currently considering the matters raised” in a series of recent breach reports.

Kalkine’s rebrand with the launch of Sivastatz has included drafting several of the most successful sales staff to call on behalf of the new business.

The Australian understands Kalkine stood down several of its most seasoned sales staff after this masthead published details of their calls, including those made by Guarav Tomar, who tells customers he is called “Gabriel”.

In calls heard by The Australian, Mr Tomar asks that calls be made to Kalkine’s Sydney office for him, however The Australian has confirmed he is in India.

Sivastatz is the latest of several pivots made by Kalkine boss Kunal Sawhney.

Kalkine figures have told The Australian the firm redeployed its New Zealand team in the wake of orders effectively stopping it selling in that country, launching Kal-Edtech+, a new business offering courses to subscribers on how to trade.

New Zealand’s corporate regulator, the Financial Markets Authority, last year banned it from making outbound calls in NZ, claiming the business was making misleading statements to investors.

FMA director of supervision James Greig said it found Kalkine was providing investment advice “with little or no regard to the inherent high risk, and estimating clients could make monthly returns of 10-20 per cent as a result of purchasing Kalkine’s research reports”.

“It is unacceptable for a financial advice provider to make misleading statements when marketing its service,” Mr Greig said.

“Of particular concern, Kalkine’s representations could entice people who may not be aware of the risks of investing, into purchasing an advice subscription, and potentially financial products that are not appropriate for them.

Kalkine declined to answer questions about the new business, which operates under a corporate entity registered by its founder and chief executive Mr Sawhney.

A Kalkine spokesman said it was a “family-owned Australian company and several of the questions are of a commercial nature, and the information is confidential to the business”.

“Kalkine ensures that its business practices in any jurisdiction in which it operates are compliant with all local laws and regulations,” he said.

“At all times Kalkine has sought and obtained professional advice that has shaped the local operations to ensure proper compliance.”