Theta AM to pay $2m penalty
Liquidated Theta Asset Management and its managing director Robert Marie has been found to have contravened the Corporations Act by issuing five defective product disclosure statements (PDSs) for the Sterling Income Trust.
The Federal Court in Western Australia ordered Theta to pay a penalty of $2 million and Marie to pay a penalty of $100,000. The Australian Securities and Investments Commission (ASIC) said it would not seek recovery of the penalty against Theta as doing so would decrease the funds available for distribution by the liquidator of Theta to its creditors.
Marie was also disqualified for four years from managing corporations after contravening the Corporations Act and failing to comply with duties as a managing director of Theta.
In handing down his judgement Justice McKerracher said the circumstances “involved catastrophic losses sustained by investors”.
Between 20 May, 2016, to 30 April, 2018, $16,749,974 was raised from retail investors pursuant to the defective PDSs.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
