Asset manager’s assets frozen in ASIC sting

By Eliot Hastie
 — 1 minute read

ASIC has obtained orders against a Queensland-based fund manager alleging it operated without a business licence and operated an unregistered investment scheme.

The commission has alleged that Goldsky Global Access Fund, run by Kenneth Charles Grace, operated without an Australian Financial Services Licence, raised millions for an unregistered fund and used those funds for personal use.

ASIC has commenced its proceedings in the Supreme Court for the appointment of a receiver to identify and secure the assets of the alleged scheme.


The Queensland Supreme Court has appointed Anthony Castley of William Buck to act as a receiver and manager of the Goldsky assets.

The court has also made freezing orders restraining the disposal of any property, including money and securities by Mr Grace and his associated entities.

In March 2017, Mr Grace advised ASIC that Goldsky Asset Management, a US-incorporated company, had commenced operating in Australia.

Goldsky was authorised as an investment adviser by the US Securities and Exchange Commission, which in September 2018 filed a civil suit against the fund in the US district court.

Following an ASIC investigation with the assistance of the SEC, ASIC has alleged that Mr Grace operated a financial services business without holding an AFSL despite knowing from at least 5 June 2018 that he was required to hold a licence.

Mr Grace is also alleged to have operated an unregistered managed investment scheme called Goldsky Global Access Fund that has raised more than $16 million from more than 50 investors.

It has also been alleged that Mr Grace used investor funds for his own personal use, including substantial payments to family members and the purchase of personal items.

The matter will return to the court on 8 November.


Asset manager’s assets frozen in ASIC sting
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