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.