Managed investment scheme wound up
A number of companies connected with an unregistered management investment product are now the subject of Federal Court restraining orders following legal action by the Australian Securities and Investments Commission (ASIC).
ASIC has obtained declarations and orders in Melbourne’s Federal Court against Royal Parade Properties, Vitalskill Management and Infocus Management, which were all associated with the Investors Choice Fixed Interest Program.
Late last year, the court made interim orders to prevent the companies from operating the scheme, but allowed all assets to be returned to investors. Around $2.8 million, owed to 26 investors, was returned with interest payments by February this year.
The companies involved have now been forbidden from promoting any managed investment scheme to the public until March 2011. In addition, they cannot deal, offer or issue any financial products to consumers, or generate an interest in any product.
The court also found that the three companies contravened the Corporations Act by failing to provide Product Disclosure Statements, and operated a financial services business without an Australian Financial Services licence.
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