The Australian Securities and Investments Commission (ASIC) has suspended the Australian Financial Services Licence of $3.1 billion manager LM Investment Management Limited (LM) for two years.
LM is the responsible entity of several registered managed investment schemes including the LM Cash Performance Fund, LM First Mortgage Income Fund, LM Currency Protected Australian Income Fund, LM Institutional Currency Protected Australian Income Fund, LM Australian Income, LM Australian Structured Products Fund and the Australian Retirement Living Fund, according to ASIC.
In March 2013, LM appointed FTI Consulting as voluntary administrators. The terms of the licence suspension allow the administrators to provide financial services such as transfering to a new responsible entity, investigating or preserving the assets, or winding up the registered managed investment schemes operated by LM, ASIC stated.
ASIC said it is continuing its enquiries in relation to the conduct of LM and will make no further comment at this time.
LM explained in a statement to investors in March that the company was being placed into administration to avoid the prospect of not being able to pay creditors.
