Theta AM to pay $2m penalty

federal court penalty fine Theta Asset Management ASIC

19 November 2020
| By Jassmyn |
image
image
expand image

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.

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 4 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. ...

5 days 19 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...

4 days 23 hours ago