ASIC winds-up unregistered retirement village scheme

An unregistered managed investment scheme relating to a retirement village has been wound up by the Federal Court following proceedings brought by the Australian Securities and Investments Commission (ASIC).

The court approved a proposal from investors in the scheme involving Camberwell Green Retirement Village and Primelife Corporation Limited (Primelife) on how it should be wound up.

Justice Goldberg accepted a deed of settlement between Primelife and the scheme’s investors, under which the Camberwell Green Village would be returned to Primelife.

He also ordered net proceeds of that sale be returned to investors in the scheme.

Before making the orders, the court heard settlement with Primelife was the best proposal available in the circumstances.

Investors had been given almost 12 months to develop alternative proposals for winding up the scheme, rather than the usual remedy of appointing a liquidator.

The orders winding up the scheme, with the consent of the defendants, ensured a review of the scheme’s books and records by independent accountant Andrew McLellan, identifying the assets and identity of investors.

“ASIC acted to ensure that investors were able to make informed decisions and maximise their returns from the winding up of this unregistered scheme,” ASIC executive director of enforcement Jan Redfern said.

“Investors received a report from an independent accountant about the affairs of the scheme, had an opportunity to seek an alternative to the appointment of a liquidator to wind up the scheme, and endorsed an alternative proposal, which the court accepted,” she said.