A significant number of dealer groups with links to embattled hedge fund manager Astarra Asset Management may be under the scrutiny of ASIC and the FPA.
The corporate regulator is believed to have sent letters and telephoned a number of firms over their links to Astarra.
It is understood that the dealer groups on ASIC’s radar range from high-profile, institutionally-aligned dealer groups to sole practitioners.
ASIC would not comment on the nature of its investigation into Astarra.
However, FPA deputy chief executive and head of professionalism Deen Sanders said the association had begun its own lines of inquiry.
“We have not been informed by ASIC at this stage of the game about the trajectory of their investigations and we are aware that they have opened an investigation, that they are sharing that with the Australian Prudential Regulation Authority (APRA) and that we understand they are working through some individual dealer groups or licensees that were listed on Astarra’s website,” Sanders said.
“But we haven’t had formal confirmation from them as to the trajectory of their investigations or the likely outcomes. We are aware of the Astarra issue and have our own inquiries underway in relation to that.
“There are a number of firms that have identified that they may have some small exposure, but at this stage of the game it’s too early to discuss any details in relation to that.”
RMG Partners Business Solutions was appointed liquidator to Astarra Asset Management Pty Limited, formerly known as Absolute Alpha Pty Limited, on 22 December 2009.
Associated firm Trio Capital was placed in external administration and came under the control of its administrators, Stephen James Parbery, Neil Singleton and Nicholas Martin of PPB, in December.
APRA suspended Trio Capital Limited (formerly Astarra Capital Limited) as the trustee of its four superannuation funds and one pooled superannuation trust, and has appointed an acting trustee to manage the five entities.
The prudential regulator’s orders were a result of numerous breaches of Trio Capital’s licence conditions and Trio Capital not being able to satisfy APRA’s concerns regarding the valuation of superannuation assets.
