ASIC takes action against Marco’s managed investment scheme
The Australian Securities and Investments Commission (ASIC) has taken further steps to wind up Chris Marco’s alleged unregistered managed investment scheme, and a related company, operated by Marco.
The regulator said it filed an application seeking leave to apply for further orders in the Federal Court in Western Australia to wind up the firms. Additionally, ASIC was seeking declarations that Marco failed to hold an Australian Financial Services Licence (AFSL) whilst carrying on a financial services business.
The application was filed against Chris Marco, who traded as Coastline Group, and the related companies were: AMS Holdings and AMS Holdings in its capacity as trustee of AMS Holdings Trust.
According to the corporate regulator, Marco was raising funds from investors since January 2010, in contravention of the Corporations Act, and in total received approximately $240 million from 132 investors.
ASIC would be seeking to appoint a receiver over Marco’s and AMS’ assets and, by way of final relief, orders to wind up the scheme and AMS, it said, as there was a very significant shortfall in the assets available to operate the scheme into the future.
There is also ASIC’s investigation into other aspects of the alleged conduct of Marco and AMS.
The first case management hearing is listed for 17 December 2019.
AUTHOR
Oksana Patron
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
