Advisers and accountants join together in fight for new Timbercorp RE
Planners are getting closer to appointing an alternative responsible entity (RE) to the Timbercorp managed investment schemes.
Kerree Bezencon from Siger Super Services told Money Management 100 advisers and accountants had joined together to push for a new RE for the schemes. Currently, Timbercorp is the RE and in administration, with administrators Korda Mentha seeking court approval to wind up the numerous schemes.
Because of the Timbercorp RE being insolvent, Korda Mentha has effectively become the RE and is seeking the courts to give a direction on its role.
Bezencon, who sits on the RE’s creditor’s committee, said the advisers and accountants were fighting for a change.
“We think there is a fundamental conflict of interest in having the administrator as the RE of the schemes,” she said.
“We are talking to a couple of alternative REs about what offering they would make to save the schemes.”
The RE to a scheme can be changed by the members (investors) voting at a specially convened meeting or the RE can be removed by the Australian Securities and Investments Commission (ASIC) and an alternative put in place.
Bezencon was scathing about ASIC’s role in the failure and its lack of support in getting the RE changed.
“ASIC is just sitting on its hands and observing,” she said.
“There has been no body, like ASIC, the [Financial Planning Association] or CPA Australia, that wants to do anything to help the advisers and their clients.”
Bezencon said the group hoped to appoint a RE as early as this week.
“We are close to an appointment and we are prepared to go through with whatever means it takes to replace the RE to these schemes,” she said.
“We can ask the members to call for a meeting and we have the numbers to achieve this.”
Bezencon also did not rule out going to the courts to force Korda Mentha out of its role as the RE.
“The group is talking to lawyers about what will be the best course of action to take," she said.
“We are going to fight for the clients and we are trying to get a solution for them.”
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