ASIC wants to wind up Tassie debenture firm
The Australian Securities and Investments Commission (ASIC) wants to shut down a Tasmanian debenture firm, which it says failed to meet the strict legal requirements of its investment offering.
Braddon Investment and Finance Pty Ltd, a Smithton-based business that raises funds through unsecured deposits then lends money back to the public, was required to put a number of safeguards in place as part of its debenture arrangements.
However, ASIC alleged to the Supreme Court of Tasmania that Braddon failed to appoint a trustee to act in the interest of investors.
It also failed to secure a trust deed, according to ASIC — another requirement for debenture companies.
"As the company is not in a position to comply with the law, ASIC is moving to wind it up on just and equitable grounds," ASIC Commissioner John Price said.
As a result, ASIC has called for a liquidator to be brought in.
ASIC stressed that the appeal to the court, which will be heard on December 17, does not allege dishonesty or insolvency.
AUTHOR
Staff Writer
Recommended for you
Providence Wealth Advisory Group has appointed a new chief investment officer, a dedicated position after the role was previously held by its CEO.
While hiring new staff in a financial advice practice inevitably incurs expenses, Striver’s Alisdair Barr says the greater business cost can come from losing the skills of a valuable team member.
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
