FEA points finger elsewhere on ASIC probe
|
|
Managed investment scheme group FEA has moved to clarify its position with respect to an Australian Securities and Investments Commission (ASIC) investigation claiming that it involves external parties rather than any of FEA’s subsidiaries, employees or contractors.
FEA made its position clear in an announcement released to the Australian Securities Exchange, saying while it had agreed with ASIC that it would not comment to the media, it believed stakeholder concerns, particularly those involving the financial planning industry, deserved to be addressed.
It said neither FEA nor its subsidiaries, employees or contractors were under investigation, nor did it believe they would be under investigation for any wrongdoing.
The statement said the current investigation was instigated by FEA when it became aware of irregularities with a small number of investments made in FEA Plantations Project 2008, that the investments were made during June 2008 and that the applications were submitted by an Australian Financial Services Licence holder.
FEA said the quantum of investments involved amounted to $1.7 million and that this amount had been appropriately identified by FEA’s auditors in preparation of the December 2008 financial statements.
The ASIC investigation into the matters surrounding FEA gave rise to reports, later denied, that ASIC had conducted raids on financial planning practices.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
