The statement from ASIC confirms reports from ifa earlier this week that Linchpin had agreed to orders around its troubled Investport Income Opportunity Fund.
At the closing of ASIC’s evidence in court, Endeavour and Linchpin agreed to the declarations of contravention and the liquidation of both companies and both funds, ASIC said.
ASIC said the findings of contraventions include:
- That Endeavour, in its role as responsible entity,:
- did not act in the best interests of the members of the registered scheme known as the Investport Income Opportunity Fund;
- failed to ensure that the financial services it provided were provided efficiently and fairly;
- failed to exercise reasonable care and skill as responsible entity;
- engaged in related party transactions without member approval, and
- failed to identify to Investport Income Opportunity Fund investors the nature and extent of the related party transactions that were entered into.
- That Linchpin:
- operated an unlawful managed investment scheme;
- operated without an Australian Financial Services Licence, and
- engaged in conduct that was likely to mislead or deceive.
In making the orders, Justice Derrington stated, “Given the length and breadth of the non-compliances with the act, there is more than sufficient justification for the winding up of both companies.”
ASIC also confirmed ifa reports that Jason Tracy and David Orr from Deloitte have been appointed as liquidators, and that investors and creditors should direct their enquiries to linchpin@deloitte.com.au.
