A Gold Coast director has been slapped with an ASIC ban for promoting the illegal early release of super to buy a home or pay personal debts.
Darren Thomas Edden-Brown, also known as Darren Brown, Darren Edden Brown, and Darren Thomas Brown, has been banned from providing financial services and engaging in credit activity for eight years as well as from controlling or performing any functions as an officer of an entity that carries a financial services business or engages in credit activities.
ASIC investigation found that Edden-Brown, while operating a business under the brand Enigma, had advertised on its website and social media that consumers who did not meet the conditions for early release of super could access their super early to buy a home or pay personal debts. It was also found that he assisted consumers who did not meet the conditions for early release to access their super early to repay personal debts.
Superannuation can only be accessed before the retirement age if a condition of release is met. Illegal early release schemes expose consumers to significant penalties.
Edden-Brown is the sole director and shareholder of Edden Brown Holdings (EBH), the corporate trustee for the Enigma Corporation Trust and the Equitibanx Australian Trust. He also served as a director and ultimate shareholder of licensees, Consolidated Mercantile Group, Wentworth Financial Services, and Search Finance, from 2019 to 2021.
“ASIC found that Mr Edden-Brown was responsible for representations on company websites, including that Enigma Corporation, Equitibanx, and CMG were licenced or authorised to provide certain financial products and services, when they were not,” the corporate watchdog said. “Although ASIC raised concerns about these statements with Mr Edden-Brown in December 2020, he failed to remove the statements until July 2021.
“As a result of this conduct, ASIC found Mr Edden-Brown is not fit and proper, and is not adequately trained or competent, to participate in the financial services and credit industries.”
Edden-Brown has the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.
