AFCA moves to reinstate APT Strategy, opens doors for victims

The Australian Fiduciaries-linked APT Strategy has been reinstated as a member of the Australian Financial Complaints Authority (AFCA), paving the way for victims to come forward.

AFCA today announced APT Strategy, which is in liquidation, is once again a member for a period of 12 months.

This follows the Supreme Court of Queensland directing ASIC to re-register APT Strategy on July 2.

APT Strategy provided advice in relation to managed investment schemes (MISs).

ASIC estimates 600 retail investors invested about $160 million into MISs run by Australian Fiduciaries since February 2020, predominantly via their self-managed super funds (SMSFs).

In July, ASIC cancelled the licence of Australian Fiduciaries, following its failure to pay an AFCA determination.

Australian Fiduciaries engaged Compare Your Super to approach prospective investors about investing in its registered schemes.

Compare Your Super was an authorised representative of Australian Fiduciaries from 20 January 2020 until 27 January 2021.

Between 27 January 2021 until 14 September 2023, Compare Your Super then became an authorised representative of APT Strategy.

ASIC has previously urged affected investors to consider making a complaint to AFCA about the financial advice provided by Australian Fiduciaries via Compare Your Super as its authorised representative at that time. Those who received advice from APT Strategy by way of Compare Your Super should also do the same.

In reinstating APT Strategy as a member, AFCA also urged impacted consumers to submit complaints against APT Strategy.

"Now that APT Strategy's AFCA membership has been reinstated for 12 months, consumers who have concerns about financial advice provided by the firm can bring their complaints to AFCA whilst the membership is current," AFCA lead ombudsman for investments and advice Shail Singh said.

"We recognise the impact these circumstances have had on this group of consumers."

Empathising with former Australian Fiduciary and APT Strategy clients, Melinda Kee, a victim of the failed First Guardian Master Fund commented: "This has been a long and complicated process for Australian Fiduciaries investors, and I'm genuinely pleased that they finally have a pathway forward."

Kee also leads the advocacy group, SOS Save Our Super, which has been helping many investors whose nest eggs have been put at risk by financial misconduct, providing information and practical resources on how to navigate the complaints process, as well as stay on top of regulatory developments, court proceedings and government reforms.

Kee said she worked closely with Callun Blurton from FD Legal throughout this process "because we both believed these investors deserved the opportunity to have their complaints heard."

"What initially looked like a dead end has become a genuine avenue for investors to pursue. I'd also like to acknowledge ASIC and AFCA for the important roles they have played in helping make this outcome possible," she said.