ASIC suspends plantation scheme

The crackdown on managed investment schemes has continued with theAustralian Securities and Investments Commission(ASIC) suspending the securities dealers licence of Plantation Equity services Limited (PES).

The move came after the directors of PES had called in administrators from chartered accountants group, Ferrier Hodgson on 28 December last year, as they felt PES was unable to meet its debt commitments.

PES is involved in a total of five managed investment schemes and is the responsible entity for three schemes, the Paulownia West Coast Projects No. 3 & 4 and the Australian Oak Project. PES’s other involvement is related to it acting as the manager for two other prescribed interest schemes, the Paulownia West Coast Projects No. 1 & 2.

The schemes have been in operation for up to six years with the Paulownia schemes and Australian Oak Project said to have attracted 400 investors with an average investment of $10,000 each, according to ASIC.

The suspension of the licence prohibits PES from further managing the schemes while the group is insolvent and externally administered, but does authorise the administrators to continue to do so to the extent necessary to carry out their duties.

As such, the administrators are able to maintain or preserve any property held in conjunction with the schemes as well as arranging a reconstruction or sale of PES and/or the schemes, and winding up the schemes.

The suspension of PES’s licence is in effect for three months.