ASIC files stop orders on tea tree project
The Australian Securities and Investments Commission (ASIC) has made final stop or-ders on the prospectuses for the The Oil Fields Project 4 and The Great Forests 1999 Project managed investment schemes.
The Australian Securities and Investments Commission (ASIC) has made final stop or-ders on the prospectuses for the The Oil Fields Project 4 and The Great Forests 1999 Project managed investment schemes.
While AusAg Resources Limited was the custodian for the schemes, Australian Tea Tree Management Limited (ATTM) and The Great Forests Limited (TGF) operated them.
ASIC adds that a large part of ATTM's and TGF's duties had been subcontracted to The Oil Fields Pty Limited and Field Operations Pty Limited.
On September 1, 1999 administrators were appointed to AusAg, ATTM, The Oil
Fields Pty Limited and Field Operations Pty Limited.
ASIC adds that its has also revoked the licence that allowed ATTM to act as the respon-sible entity of The Oil Fields Project 4. And, the Supreme Court in New South Wales has appointed Cardinal Financial Securities Limited as the temporary responsible entity for the scheme.
In the meantime, ASIC's national compliance adviser for managed investments Pauline Vamos has stressed the need for fund managers to ensure that they have sufficient re-sources at all times to meet ongoing cash requirements.
"Fund managers must monitor their cash flow positions and notify the Compliance Committee and ASIC of any problems before investor funds are at risk," she says.
"They should also keep investors informed of any significant deteriorations in their fi-nancial positions by issuing supplementary prospectuses as soon as practicable. These compliance issues will continue to be a priority for ASIC.
"Apart from the risk of losing their licenses, fund managers also face possible civil and criminal prosecution under the Corporations Law if they fail to prevent insolvent trad-ing," Vamos says.
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