Investor calls for class action as Finchley Central Funds Management's liquidator confirms the regulator is not presently hunting advisers linked to the group.
An investor of failed financial services firm Finchley Central Funds Management (Finchley) has called for fellow investors to step forward to form a class action against the group.
The investor, who spoke on condition of anonymity, is calling the other 600-plus investors of the Westpoint associated group to come forward to discuss forming a class action.
"I do not know any other of the 600-plus investors and would like to know them so we could join and do a class action," the investor said.
"It wouldn't cost as much if we all put in a bit, but I have no way of contacting them."
The unnamed investor is seeking to recover $280,000 of personal investments in the Gilead Trust number 2 - one investment for $250,000 and one investment for $30,000.
In an email obtained by InvestorDaily, Finchley liquidator Jennifer Low of Sheridans Chartered Accountants said at this stage ASIC does not intend to instigate action against financial advisers as it did with other Westpoint actions.
"I have asked ASIC whether they are considering similar action against financial advisers who put their clients into Finchley and they have advised that they are not considering this at the moment," the email said.
Finchley is the responsible entity of the registered managed investment scheme, Finchley Development Capital Funds (FDCF), which has two active trusts - The Gilead Trust and The Riverside Trust.
The Gilead Trust, and Sunrise Community Living Pty Ltd and its associated companies (Viceroy), raised $25.5 million from more than 600 investors to construct a retirement resort.
The Riverside Trust raised $15.9 million from about 340 investors for the funding of a boutique hotel development in Western Australia.
Finchley was formerly known as Kebbel Funds Management Ltd, which is believed to have raised most of Westpoint's capital.
ASIC sought wind up orders against Finchley last year.
Sheridans Chartered Accountants was appointed liquidator of Finchley on 22 September 2009.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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