A victim of NextGen Financial Group has received a payment from the CSLR after the company went into liquidation rather than pay a $270,000 determination from the Australian Financial Complaints Authority (AFCA).
In August 2016, WJ & V Drakoulis Super Pty Ltd (as trustee for the WJ & V Drakoulis Super Fund) received personal advice to establish an SMSF to purchase a residential investment property. However, there was a delay in the settlement of the investment property.
In the interim, the $175,000 that had been put aside for the property purchase was invested into Fund I for a one-year term, which meant the property purchase was unable to be completed.
The trustee complained to AFCA, and NextGen was ordered to pay $270,000 for…