Opposition calls for action on frozen redemptions
The shadow minister for financial services, superannuation and corporate law, Chris Pearce, has raised concerns that the Government is not providing relief for investors with money in frozen mortgage and cash management trusts.
Pearce’s comments came on the heels of an announcement that the Government was suspending the requirement to pay out minimum payments from super account-based pensions.
Pearce said the Government’s bank guarantee had undermined the stability of formerly reliable investment trusts and questioned what action the Government would take to assist investors who could not redeem their frozen funds. Up to 270, 000 investors have had their money froze, he said.
“Australians with their money invested in these vehicles have been left out of the Government’s plan to lend assistance to those weathering the financial storm. Their money remains frozen with no end in sight,” he said.
Many mortgage trust funds were frozen after a Government bank guarantee led to a rush of redemptions out of the sector.
Recommended for you
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.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
