MMC gives undertaking to ASIC on securities offer
MMC Asset Management has provided an enforceable undertaking to the Australian Securities and Investments Commission (ASIC), following an investigation into unsolicited offers to purchase securities the fund manager made to the top 1000 shareholders in Ausbulk Ltd.
The unsolicited offers, which MMC characterised as an ‘opportunity to sell’, contravened provisions of the Corporations Act 2001 introduced in January 2004 to specifically regulate unsolicited offers to purchase securities, according to ASIC.
Under the terms of the enforceable undertaking, MMC must write to those who were sent the offer, refrain from registering any share transfers and report to ASIC in relation to the withdrawal of the offer.
To ensure future contraventions are avoided, MMC has undertaken to have any future unsolicited offers vetted by an external compliance expert. The offers in question were not dated, failed to state the period for which they were to remain open and failed to include details about any withdrawal of the offer.
MMC also gave an undertaking to ASIC that in the event that they breach these provisions, they would not oppose the imposition of conditions onto their Australian financial services licence.
MMC issued a statement saying that the undertaking was “volunteered on a no admission basis and relates to a technical breach”. Further, the statement said that the breach was “inadvertent and of a minor technical nature, and the letter was supported by Ausbulk’s management”.
MMC chief executive Andrew Fairweather said that in the course of ASIC’s investigation, MMC’s internal compliance measures were found to be adequate. However legal advice sought by MMC on the letter was found to be incorrect, and accordingly the focus of the enforceable undertaking is on external compliance.
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
