Australian Public Trustees Limited (APT), which had been authorised to operate managed investment schemes and act as a responsible entity (RE), had failed to comply with its licence conditions, the regulator stated.
The group had also failed to lodge its financial reports in time, according to ASIC.
APT’s two managed investment schemes invested in direct real property, and the group will now continue to operate under restricted conditions to enable it to wind up the schemes or transfer them to a new RE, ASIC stated.
The group’s AFSL was cancelled effective 18 July 2013, with the restricted extension to continue until 30 June 2014.
ASIC initially suspended the group’s licence authorisations on 15 August 2012 for any purposes other than running its two managed investment schemes for failing to comply with licensing conditions or lodge reports on time.
“ASIC suspended the licence to allow time for APT to find a commercial solution to issues facing the schemes it operates for the benefit of the investors in those schemes and rectify the breaches,” ASIC stated.
Australian Public Trustees Limited’s services included issuing, acquiring and disposing of interests in managed investment schemes, according to ASIC. APT has the right to appeal the decision at the Administrative Appeals Tribunal.
ASIC commissioner Greg Tanzer said schemes wanting to take on the responsibility of managing investors’ money must be backed by REs with appropriate financial substance.
“Companies also have obligations that are central to ensuring the transparency and accountability of the reporting process. These obligations must be complied with to ensure users of financial reports like unit holders and creditors have the information available to help them make informed decisions,” he said.
