ASIC recently launched the action against Mayfair Platinum and Mayfair 101 over the promotion of two debenture products to wholesale investors, alleging the advertisements were misleading or deceptive.
But the group has rejected the claims, adding that its $1.6 billion redevelopment of Dunk Island and Mission Beach could be disrupted by the case.
A spokesperson for Mayfair 101 said: “The Mayfair 101 Group remains committed to revitalising Mission Beach, Dunk Island and the surrounding region.”
“However, we are concerned that this unwarranted action by ASIC has the potential to disrupt our strong progress in the region.”
Local community member and economist Pete Faulkner commented: “Our region has had too many false starts and to date, Mayfair 101 has demonstrated significantly more promise and action than we’ve previously seen.”
“[Its] activities have already led to increased employment and economic activity, and a more positive outlook for our community.”
ASIC’s action has come as the group has decided to suspend redemptions in response to COVID-19, in an effort to protect the value of its assets and preserve liquidity during the period of uncertainty.
In light of the withdrawal freeze, the regulator is seeking an interim injunction to restrain the defendants from promoting and issuing the products while redemptions to existing investors remain suspended.
ASIC’s application for an injunction was set to be heard by the Federal Court on Tuesday.
But Mayfair 101 has expressed frustration that it has been criticised for the measure, while industry superannuation fund Hostplus was reported to update its product disclosure statement to say it had “absolute discretion” to “suspend or restrict” applications for cash withdrawals and redemptions.
A spokesperson for the group blasted ASIC for being “happy to overlook superannuation funds updating their disclosure documents about freezing redemptions or banks limiting cash withdrawals to just $5,000 at some branches, but felt the need to target the Mayfair 101 Group, which has ultimately acted in accordance with our rights and in the best interests of our investors during an unprecedented global crisis.”
