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The collapse of Gold Coast funds management and investment group MFS and its impact on investors in the Premium Income Fund has now emerged as an issue before the Joint Parliamentary Committee of Inquiry into Financial Services and Products.
Successive submissions to the so-called Ripoll inquiry have referred to the Premium Income Fund, all distributions and redemptions of which were frozen in January last year.
The submissions relating to the Premium Income Fund make clear that as a result of the freeze and the loss of distributions, many investors have been left relying on social welfare benefits.
The submissions have also requested a Senate Inquiry into allegations that MFS and its successor firm, Octaviar, may have improperly dealt with funds from the Premium Income Fund to prop up other operations.
The submissions allege that as much as $330 million belonging to the Premium Income Fund may have been affected by the operations of MFS and Octaviar.
The submissions argue that the Federal Government’s bank deposit guarantee has impacted funds such as Premium Income Fund and that any Senate inquiry should extend to include a government guarantee to investment deposits of injured funds such as Premium Income Fund.
