ASIC accepts enforceable undertaking from Opus
The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from Opus Capital, a responsible entity for 14 unlisted property funds.
The EU follows the rectification of a breach of a condition of its Australian Financial Services (AFS) licence, ASIC stated.
Under the EU, Opus has agreed to not rely on deferred tax assets or sale and performance fee assets for the purposes of meeting its Net Tangible Asset (NTA) conditions, and must classify these assets as intangible assets in all financial reports.
Opus must also not recognise the sale and performance fee that may arise on the sale of properties held by schemes it manages as revenue, except to the extent that a particular fee relates to an asset that has been sold, and will use an amortised cost of the sale and performance fee of zero rather than its fair value, ASIC stated.
Opus will also provide ASIC with a quarterly report on its compliance with the financial conditions of its licence for the next two years.
Prior to accepting the EU, Opus rectified the breach of the NTA condition through a subordinated loan of $2.5 million, according to ASIC.
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