Press Release In Response To ASIC's June 22nd, 2005 Press Release
21st Century has agreed to an out of court settlement with ASIC over whether Jamie McIntyre's book "What I Didn't Learn¬ At¬ School But Wish I Had" and share topics covered by Jamie McIntyre within live seminars in Australia in the past constituted financial product advice and required¬ a licence to deliver.
The matter was set for a July 12, 2005 hearing in the Melbourne Federal Court,¬ however both parties were able to come to a mutual agreement out of court recently¬ on¬ 3 key areas.
1. 21st Century agreed not to distribute the old 2004 version of the above mentioned book without adjusting Chapter 13 in regard to the share strategies.
21st Century has already adjusted this Chapter and reprinted an updated edition and the updated book is now in stock or available as an E-Book download at www.21stcenturyacademy.com
2. 21st Century agreed not to cover share topics in live seminars unless covered by a licensed holder (for any 3 day seminars) held within Australia. This has been our intention for some time.
Therefore we will continue to hold live seminars in Australia as per normal and our licensed speakers will cover the share topics as per normal.
3. 21st Century accepted a declaration that in the past¬ the covering of share topics by Jamie¬ McIntyre¬ may have constituted financial product advice, however as the matter did not go to court we will never know what may have been ruled by the Federal Court. We decided not to continue defending this matter in court but settled out of court and agreed to pay some of ASIC's costs of $35,000. The court case would have cost some 10 to 20 times more and simply was not commercially viable to defend the matter, considering it related¬ to past seminars and not current or future ones.
Our legal advice for years has been that the seminars 21st Century provided do not give Financial Product Advice unless covered by a licence holder. However, if this was done inadvertently, this is due to ASIC being what we consider unco-operative and unwilling to provide any clarification or guidance on what does or doesn‚Äôt constitute financial product advice. This is despite continual, repeated attempts for several years now to have them do so. We believe¬ any inadvertent covering of financial product advice (if it did occur)¬ occurred¬ only because of ASIC's unwillingness to do what we consider to be their job, and make a clarification¬ when requested in order to resolve matters without the need for costly litigation. This would surely have been a simple way to resolve this matter and save taxpayers' expense.
21st Century Academy Homestudy programs will continue unchanged, as will seminars within Australia, as we have had licensed¬ speakers covering share topics at Australian¬ seminars for some time.