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.
Recommended for you
Proper recordkeeping has been described as the “mortar between the bricks” of the advice process and critical to an FSCP decision as an adviser is suspended for failures in this area.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
As investors increasingly seek to embed ESG considerations in their portfolios, a specialist adviser has offered tips for financial planners who may feel overwhelmed in tackling these complex topics with clients.
Global investment consultancy bfinance is expanding into offering services for wealth managers as they seek advanced investment strategies for their clients.
