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A subsection is shown below:
The undertakingsMr Kaye, NII and Novasource have given undertakings to the Federal Court that they will not:
make any statement or representation in any form to the effect that the training or other services provided by them, as well as the mezzanine finance products or any other products promoted by them, have been approved by ASIC. (This undertaking to the Court was also given by Mr Meagher);
supply, promote or provide any financial product, or give any financial product advice without first obtaining an AFSL, or being an authorised representative of a holder of an AFSL; and
make any recommendation, express any opinion or provide any advice in relation to any mezzanine finance product or any other financial product, nor in relation to any decision about whether to invest in such products, nor shall they deal in such products, until such time as they hold an AFSL, or act as an authorised representative of an AFSL holder.
In addition to the Court undertakings, Mr Kaye, NII and Novasource have given an enforceable undertaking to ASIC that:
NII and Novasource will publish a corrective advertisement in all major daily metropolitan newspapers within seven days;
NII will also offer a full refund of fees to any clients who enrolled in a training program costing more than $1000, between 1 March and 31 December 2002, subject to an independent reviewer being satisfied that the clients relied on the statements and representations made by NII that ASIC approved the course or the mezzanine finance product;
NII will notify all affected clients by 27 August, advising them of their right to claim a refund;
NII and Novasource will appoint an independent party to review and monitor their respective compliance with the undertakings, who will report the findings to ASIC on or before 1 September 2003, 31 December 2003 and 30 April 2004;
both NII and Novasource will also appoint a compliance officer who will institute an education and training program for relevant employees and representatives.
The Federal Court also ordered, by consent, that Henry Kaye, NII and Novasource pay ASIC’s costs in the proceedings, fixed in the sum of $50,000. A copy of the EU is available on ASIC’s website at http://www.asic.gov.au. [Internet Manager: The EU will be available on this website shortly.]
