The Australian Securities and Investments Commission (ASIC) wants to shut down a Tasmanian debenture firm, which it says failed to meet the strict legal requirements of its investment offering.
Braddon Investment and Finance Pty Ltd, a Smithton-based business that raises funds through unsecured deposits then lends money back to the public, was required to put a number of safeguards in place as part of its debenture arrangements.
However, ASIC alleged to the Supreme Court of Tasmania that Braddon failed to appoint a trustee to act in the interest of investors.
It also failed to secure a trust deed, according to ASIC — another requirement for debenture companies.
"As the company is not in a position to comply with the law, ASIC is moving to wind it up on just and equitable grounds," ASIC Commissioner John Price said.
As a result, ASIC has called for a liquidator to be brought in.
ASIC stressed that the appeal to the court, which will be heard on December 17, does not allege dishonesty or insolvency.
