ASIC takes Mayfair 101 and Mayfair Platinum to Court for misleading ads
The regulator alleges that Mayfair Platinum and Mayfair 101 made statements that were deceptive by representing that Mayfair products are comparable to bank terms deposits.
The Australian Securities & Investments Commission (ASIC) today announces that it has commenced proceedings in the Federal Court of Australia against companies in the Mayfair 101 group over misleading advertisements.
Mayfair Wealth Partners Pty Ltd, trading as Mayfair Platinum, and Online Investments Pty Ltd, trading as Mayfair 101, promote two debenture products to wholesale investors:
- M+ Fixed Income Notes, which are unsecured promissory notes issued by M101 Holdings Pty Ltd; and
- M Core Fixed Income Notes, which are secured promissory notes issued by M101 Nominees Pty Ltd.
According to the regulator, Mayfair Platinum and Mayfair 101 made statements that were false, misleading or deceptive by representing that:
- Mayfair products are comparable to bank terms deposits, and have a similar risk profile to bank term deposits, when they are debentures with a significantly higher risk profile;
- the principal investment will be repaid in full on maturity, when investors may not receive capital repayments on maturity or at all, and because Mayfair could elect to extend the time for repayment for an indefinite period;
- Mayfair products were specifically designed for people seeking “certainty and confidence in their investments”, when investors may not receive interest and/or capital repayments, and could lose some, or all, of their investment; and
- Mayfair products provide capital growth opportunities, when they do not.
ASIC is seeking injunctions to restrain the publication of statements of this kind, and pecuniary penalties in relation to the alleged false or misleading representations.
Let’s note that, in March 2020, Mayfair Platinum suspended payment of capital redemptions to investors in the Mayfair products due to liquidity issues. Given this, ASIC is also seeking an interim injunction to restrain the defendants from promoting and issuing the Mayfair products while redemptions to existing investors remain suspended.
Consumers can complain to the Australian Financial Complaints Authority (AFCA), as the licensee of the M+ Fixed Income Notes and M Core Fixed Income Notes, Quattro Capital Group Pty Ltd, is a member of AFCA. Before contacting AFCA, investors should first raise their concerns directly with Mayfair Platinum.
Consumers who have invested in the M+ Fixed Income Notes or the M Core Fixed Income Notes, that have concerns, can lodge a report of misconduct with ASIC about their dealings with the Mayfair 101 group.
