ASIC obtains interim orders against Equititrust
The Australian Securities and Investments Commission (ASIC) has placed a number of interim orders against Equititrust Limited restraining the operations of two of its managed investment schemes (MIS).
The two schemes affected by the interim orders are Equititrust Income Fund (EIF) and Equititrust Priority Class Income Fund (EPCIF).
The orders were obtained in the Supreme Court of Queensland on 27 October prior to a hearing by ASIC that will consider whether Equititrust is in breach of a condition of its Australian Financial Services Licence (AFSL) requiring that it hold a minimum amount of net tangible assets.
It follows resolutions made by Equititrust's board of directors on 12 October that the purposes of EIF could not be accomplished and steps needed to be taken wind up the fund, ASIC stated.
The regulatory body is also concerned that Equititrust is in breach of the Corporations Act 2001 requiring that it lodge audited financial reports and compliance plans for EIF and EPCIF.
According to ASIC, the orders restrain Equititrust from modifying or replacing EIF's constitution; issuing new interests; redeeming, cancelling or modifying existing members' interests; dealing with property held or controlled by Equititrust (as the responsible entity); or entering into contracts, deeds or agreements regarding any property held or controlled by Equititrust.
In relation to EPCIF, the orders restrain Equititrust from issuing new interests in the scheme without first providing written notice to ASIC.
The interim orders will restrain the operations of the two investment schemes until 12 December or by early order of the Court, ASIC stated.
ASIC's announcement follows the resignation of Equititrust directors Mark McIvor and David Kennedy on 14 June.
AUTHOR
Andrew Tsanadis
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