Unregistered scheme wound up
An Australian Securities and Investments Commission (ASIC) investigation has resulted in a Perth-based development, Lake Coogee Estate, being wound up because the managed investment scheme’s operators failed to register their intentions with ASIC.
The Australian Federal Court ordered the scheme’s primary operator, Lake Coogee Estate Management (LCEM), to complete the scheme within 24 months and also appointed an independent supervisor to oversee the scheme’s completion as well as regularly report on its progress.
ASIC executive director of enforcement Jan Redfern said managed investment schemes must, by law, be registered with ASIC.
“Schemes that are not registered fail to afford investors the protections they would otherwise have access to, should the need arise,” she said.
“This is a practical solution, limited to the facts of this case, in that it facilitates a court-approved process to ensure the Lake Coogee project will be completed in an open and fair manner.
“It considers the legal requirements but does not limit opportunities for investors.”
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