ASIC shuts down ‘foreign currency’ scheme
The Australian Securities and Investments Commission (ASIC) has obtained orders to shut down an illegal ‘foreign currency’ managed investment scheme involving more than $14.5 million.
The Supreme Court of Queensland issued the wind up orders for the unregistered New Zealand-based company Risqy Limited after an ASIC investigation found 260 Australian investors had paid over $14.5 million into the managed investment scheme.
The investors were told the money would be invested in foreign currency exchange trading, and promised a return of 4.23 per cent per month, or 64.4 per cent per annum.
In November 2006, ASIC put a freeze on Risqy assets to protect current investors and prevent further investments into the company. According to ASIC, approximately $4.5 million remains in the scheme.
ASIC executive director of enforcement Jan Redfern said the law required that managed investment schemes be registered to protect the interests of investors.
“ASIC can and will act against foreign companies which seek to raise funds, carry on businesses and promote schemes in Australia without complying with Australian registration requirements,” she said.
AUTHOR
George Liondis
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