Unregistered MIS ordered to wind up
The Federal Court has made orders to wind up Askk Investment Group and the illegal unregistered managed investment scheme it operates, in respect to land it owned on the Hume Highway.
The orders followed an investigation and application brought by the Australian Securities and Investment Commission (ASIC).
From October 2017, Askk raised over $10 million from over 270 investors in a managed investment scheme related to land at Lot 2, 615 Hume Highway in Beveridge, Victoria.
The court found the scheme was an unregistered managed investment scheme when it was required to be registered under the Corporations Act, which the court ordered to be wound up.
Daniel Crennan, ASIC deputy chair, said this conduct had put substantial funds at risk for investors who were not afforded the protections of a lawfully registered scheme.
“This action provides an example of ASIC’s enforcement approach when consumers’ funds are put at risk by illegal schemes,” Crennan said.
A settlement between Askk and the venders of the land, Old Hume, required Old Hume to repay all monies paid to it by Askk under the purported contract sale of the land, which is due to be completed by 16 October, 2021.
Timothy Normal and Salvatore Algeri of Deloitte Financial Advisory were appointed liquidators of Askk and the scheme.
The liquidator would oversee the payment due by Old Hume, call in the assets of Askk, assess creditors’ and investors’ claims and make distributions, and investigate the conduct of the directors and other parties associated with the scheme.
AUTHOR
Chris Dastoor
Recommended for you
Insignia Financial has received a takeover bid from a second US firm, topping Bain Capital’s offer with a bid of $4.30 per share.
As the year comes to an end, Money Management takes a look at the biggest announcements that shocked the financial advice industry in 2024.
As the year draws to a close, a new report has explored the key trends and areas of focus for financial advisers over the last 12 months.
Assured Support explores five tips to help financial advisers embed compliance into the heart of their business, with 2025 set to see further regulatory change.
