Australia’s
market watchdog has asked the Federal Court to appoint receivers to Australian
Fiduciaries Limited and 30 related companies after the collapse of investment
schemes that attracted around $160 million from approximately 600 retail
investors.
ASIC Seeks Court-Appointed
Receivers for Australian Fiduciaries After $160 Million Investment Scheme
Collapse
The
Australian Securities and Investments Commission (ASIC) filed court documents
on June 13 seeking urgent asset preservation orders and the appointment of
McGrathNicol partners as receivers to the sprawling network of entities. The
application targets companies involved in property investment schemes that
stopped accepting new money in September 2023.
Most
investors put their money into the schemes through self-managed superannuation
funds, with investments flowing into the products from February 2020 until they
were suspended nearly two years ago. The schemes focused on property
investments, including specialized disability accommodation and early learning
centers.
ASIC’s
court filing reveals the regulator wants receivers to “identify and
secure” the companies’ assets, track down investor funds, and determine
what happened to the money. The proposed receivers would have 45 days to report
back to the court on the companies’ financial position and prospects for
investor recovery.
The case
centers on Australian Fiduciaries Limited, which operated as the responsible
entity for several registered managed investment schemes. Court documents show
the company has addresses in Sydney and Brisbane, with many related entities
sharing offices in Milton, Queensland.
You may also like: Adviser Banned for 10 Years After $15M Hit Shady UK Platform
Missing Financial Reports
Raise Red Flags
The
investment manager has failed to file required audited financial statements for
the 2024 financial year or compliance reports for the first half of 2025.
Investors haven’t received updates on their investments since May 2024,
according to ASIC’s statement.
The
regulator’s investigation focuses on several areas of concern, including how
the company managed conflicts of interest and the complex web of related-party
transactions that characterized the investment structure. ASIC is also
examining whether Australian Fiduciaries properly valued the underlying assets
in its schemes and how investor funds were ultimately deployed.
Court
documents reveal the schemes involved a “complex group of entities
controlled by related parties,” suggesting investor money may have been
channeled through multiple layers of corporate structures before reaching final
investments.
Broad Asset Freeze Sought
ASIC ‘s
application seeks sweeping asset preservation orders that would prevent the 31
defendant companies from disposing of property, incurring new debts, or moving
assets offshore. The proposed orders include exceptions for ordinary business
expenses and legal costs related to the court proceedings.
The
regulator has also asked for permission to notify banks, cryptocurrency
exchanges, and property registries about the asset freeze orders. Court
documents show ASIC wants to suppress publication of investor names and contact
details to protect their privacy.
Australia’s
market watchdog has asked the Federal Court to appoint receivers to Australian
Fiduciaries Limited and 30 related companies after the collapse of investment
schemes that attracted around $160 million from approximately 600 retail
investors.
ASIC Seeks Court-Appointed
Receivers for Australian Fiduciaries After $160 Million Investment Scheme
Collapse
The
Australian Securities and Investments Commission (ASIC) filed court documents
on June 13 seeking urgent asset preservation orders and the appointment of
McGrathNicol partners as receivers to the sprawling network of entities. The
application targets companies involved in property investment schemes that
stopped accepting new money in September 2023.
Most
investors put their money into the schemes through self-managed superannuation
funds, with investments flowing into the products from February 2020 until they
were suspended nearly two years ago. The schemes focused on property
investments, including specialized disability accommodation and early learning
centers.
ASIC’s
court filing reveals the regulator wants receivers to “identify and
secure” the companies’ assets, track down investor funds, and determine
what happened to the money. The proposed receivers would have 45 days to report
back to the court on the companies’ financial position and prospects for
investor recovery.
The case
centers on Australian Fiduciaries Limited, which operated as the responsible
entity for several registered managed investment schemes. Court documents show
the company has addresses in Sydney and Brisbane, with many related entities
sharing offices in Milton, Queensland.
You may also like: Adviser Banned for 10 Years After $15M Hit Shady UK Platform
Missing Financial Reports
Raise Red Flags
The
investment manager has failed to file required audited financial statements for
the 2024 financial year or compliance reports for the first half of 2025.
Investors haven’t received updates on their investments since May 2024,
according to ASIC’s statement.
The
regulator’s investigation focuses on several areas of concern, including how
the company managed conflicts of interest and the complex web of related-party
transactions that characterized the investment structure. ASIC is also
examining whether Australian Fiduciaries properly valued the underlying assets
in its schemes and how investor funds were ultimately deployed.
Court
documents reveal the schemes involved a “complex group of entities
controlled by related parties,” suggesting investor money may have been
channeled through multiple layers of corporate structures before reaching final
investments.
Broad Asset Freeze Sought
ASIC ‘s
application seeks sweeping asset preservation orders that would prevent the 31
defendant companies from disposing of property, incurring new debts, or moving
assets offshore. The proposed orders include exceptions for ordinary business
expenses and legal costs related to the court proceedings.
The
regulator has also asked for permission to notify banks, cryptocurrency
exchanges, and property registries about the asset freeze orders. Court
documents show ASIC wants to suppress publication of investor names and contact
details to protect their privacy.
This post is originally published on FINANCEMAGNATES.
