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ASIC clamps down on Sydney investment managers

— 1 minute read

ASIC has suspended the Australian financial services licenses of Sydney-based Theta Asset Management and Valuestream Investment Management. 

Theta is the parent entity and related party of Valuestream Investment Management.

The licenses have been blocked until 21 July, with ASIC citing the two entities have been placed into external administration. 

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The suspension has come after ASIC commenced action against Theta in the Federal Court in Western Australia in December.

The regulator claimed that Theta, the responsible entity for Sterling Income Trust, and the asset manager’s director, Robert Patrick Marie, had breached their duties under the Corporations Act, engaging in misconduct with the trust’s promotion and management. 

The firm was said to raise more than $16 million from retail investors in accordance with alleged defective product disclosure statements. 

Regarding their license suspensions, the two entities may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision. 

On 13 December, Christopher Darin and Mervyn Kitay of Worrells Solvency & Forensic Accounting were appointed as administrators of both Theta and Valuestream. 

While ASIC has suspended the licenses, it has used its power under the Corporations Act to allow the administrators to conduct certain “necessary” activities under the licenses during their administration. 

 

ASIC clamps down on Sydney investment managers
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Sarah Simpkins

Sarah Simpkins

Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth. 

Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio. 

You can contact her on [email protected].

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