ASIC strips timeshare company of licence
The corporate policeman has cancelled the Australian financial services licence of troubled Gold Coast timeshare company Ultiqa Lifestyle Promotions.
It was arguably a hollow victory for the regulator because Ultiqa was placed into voluntary liquidation on 30 April 2021.
The Varsity Lakes-based Ultiqa had a chequered history with the Australian Securities and Investments Commission, with the company experiencing a string of complaints against it.
On 3 November 2021, the regulator started legal proceedings against Ultiqa, accusing that its financial advisers told consumers to invest in the Ultiqa Lifestyle Scheme even though it was not in their best interests and not being appropriate to their circumstances.
The Federal Court of Australia agreed, and the company was subsequently ordered to pay $900,000.
At the time, ASIC deputy chair Karen Chester said: “Ultiqa prioritised sales over appropriate advice and ultimately consumers’ best interests.
“The penalty against Ultiqa, the first against a timeshare provider, sends a further significant message to the timeshare industry.
“When sold alongside financial advice, it is both fundamental and legally required that the advice is in the consumers’ best interests.”