Legal Tip 319: What is a ‘Vestey’ Trust?

According to ASIC’s statement confirming a 4 year ban from providing certain services concerning credit services and managing a company providing financial services, published on Tuesday 4 April 2022, Ms Grubisa, a lawyer and the CEO of the DGI group of companies (DG Institute and DGI Wealth), is “not a fit and proper person” to engage in financial services or credit activities and “is likely to continue to contravene financial services and credit law”.

The corporate regulator found that Ms Grubisa falsely represented that she and her company DGI Wealth held an Australian financial services licence and a credit licence. She was also found to have represented herself as an ASIC-licenced debt specialist, despite no such licence existing at the time. Moreover, ASIC alleged that Ms Grubisa had a tendency to embellish her qualification to create credibility and a habit of not telling the truth.

22-079MR Dominique Grubisa receives four-year ban | ASIC - Australian Securities and Investments Commission

 

And what has the relevant law society done?

 

Here is the ASIC press release
22-079MR Dominique Grubisa receives four-year ban | ASIC - Australian Securities and Investments Commission

 

Agree....The ASIC release clearly indicated a number of areas of concern
- Dishonesty "habit of nottelling the truth"
- Breach of specific laws
- Misuse of court records
- Embelish qualifications (not necessarily that of law perhaps)
- Fail to conduct herself with professionalism !!

Yet a guy who went to the September AFL grand final in Perth less than 6 months ago who also served jail time is stripped of his ability to work for a financial services licensee for 10 years all because he falsified a entry border pass and made a false declaration.


Dominique Grubisa's "distressed" Victorian law practising certificate is a interesting review of the state of the legal profession

 

Hard to imagine you're fit and proper to engage in legal practice if not fit/propert for financial services - and interesting finding that she is likely to continue to contravene the law. "ASIC also found that Ms Grubisa is not a fit and proper person to engage in financial services or credit activities and is likely to continue to contravene financial services and credit law"

 

NSW practicing certificates are up for renewal right now. Here are 2 questions they ask:

 

Article in AFR about the previously mentioned issue .... ( NOTE article seems to be open access not paywalled )
DG Institute boss Dominique Grubisa banned by ASIC for four years

 

Collected her annual membership fees

 

Ms Grubisa will have the right to go to the Administrative Appeals Tribunal to appeal against ASIC’s decision.

“We disagree with the decision made by ASIC. We have lodged an appeal with the Administrative Appeals Tribunal,” DG Institute said in a statement.

 

This is the standard practice for all decisions. They are reviewable by the tribunal. ASIC mention this on all their media. Melissa Caddick would have disagreed with ASIC too had she stuck around.

The courts and jails are filled with those who disagree. There seems a lot to disagree on in the ASIC announcement.

 

another article
Property platform restricts under fire DG Institute’s access

 

ASIC steps in after 'dishonest' wealth guru exposed

 

Meanwhile the person indicated in the penalties imposed is allowed to continue to be a Director, trade in the matters for which they were banned and control the entity. Shouldnt anyone remain suspended until a appeal is determined ? The law is daft and seem to be totally geared to those alleged to cause harm.

I would be stunned if a PI insurer would maintain PI cover given such allegations which means any license is immediately of nil effect. Surely ASIC have considered that matter and confirmed PI cover exists as it IS a license condition to possess PI cover. Perhaps that is a confusing concept. Interesting if Chris Baker or AFR or other media have asked ASIC that question ? ASIC need to be accountable.

And the law society of any state has still done nothing.

 

Another article
ASIC was alerted by insolvency body to concerns about DG Institute products

 

I see today some DG related company is suing Corelogic/RP Data for pulling access to property subscription data. Apparently they felt the data was misused ? General consumer law doesnt generally impose a expectation for continued supply and a consumer cant generally demand this as a right. Most licenses have a simple right of refusal clause. Obviously important data for the business. LOL
Firm associated with DG Institute and Dominique Grubisa sue RP Data after parent company CoreLogic cut off access to platform

Another provider Archistar have been reported by Fin review as restricting (heavily) data access after considering its data use "predatory". Seems consistent with some of the ASIC reasoning that is under appeal. Sorry - The ASIC view isnt under appeal. The adminstrative decision is.

So she continues to practice and hasnt fallen to the fate of other family and been struck off by a law society. Sounds like a law degree is going to become a well used resource to fight their way onwards.

 

ASIC was alerted by insolvency body to concerns about DG Institute products

 

DG Institute boss Dominique Grubisa faces negligence claim from Unity Funding

Ironic the Law Societies of Australia not acting may be a benefit. LOL...I dont provide credit advice. Isnt that a issue that the mehajers associates are alleging ?? The legal advice was about credit issues and security...or lack of it.

The case centres around the so-called “Grubisa System” for mortgage lending and alleged representations the DG Institute chief executive made regarding security, failing to differentiate between registered and equitable mortgages

 

Interesting though the paywall prevents me reading the article

 

I use a google path that bypases all paywalls esp those Fairfax ones. It means the pixel device must always not allow cookies on certain sites. Kind Google manage the issue for me. Its a beta thing for some of their subscribers. My browser pops up a redirect to a clean (historical) path. Only downside I cant share links or copy / paste except small bits.

 

Check chrome / firefox addin. They often get found and fixed so they fail