ASIC winds-up unregistered managed investment scheme

corporations act australian securities and investments commission

29 August 2006
| By Arjun Ramachandran |

The Supreme Court of Queensland has declared that an unregistered managed investments scheme has operated in breach of the Corporations Act.

Following an application by the Australian Securities and Investments Commission (ASIC), the court confirmed David Palmer and companies related to him (the Intertax Group) had operated the scheme in breach of the Act.

Justice Fryberg also ordered that Gerald Collins and Matthew Joiner of Jefferson Collins Joiner (Chartered Accountants) be appointed liquidators to wind up the members of the Intertax Group and the scheme.

The court accepted ASIC’s submission that several funds operated by the Intertax Group constituted one overall scheme.

A report prepared by Collins and Joiner for the court concluded that the scheme was insolvent and that investors in the scheme were owed approximately $14 million.

It also found grounds to suspect that Palmer and the Intertax Group had contravened the Corporations and ASIC Acts, and that the liabilities of the scheme had exceeded its assets by approximately $9.7 million.

The court also considered a proposal for the scheme’s winding up put forward by Palmer and supported by investors.

However, Justice Fryberg believed the proposal was a continuation of the unregistered managed investment schemes and “seriously doubted whether the proposal could be lawfully carried out”.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 5 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days 9 hours ago