ASIC commences proceedings against PE Capital FM

The corporate regulator has commenced proceedings against PE Capital Funds Management in the Federal Court in Brisbane alleging misconduct in the operation of managed investment schemes.

The Australian Securities and Investments Commission (ASIC) alleged that the firm:

  • Operated the following unregistered managed investment schemes (the Unregistered Schemes) in circumstances where these unregistered schemes should be registered:
    • PE Capital Property Development Opportunities Fund (P1 Fund);
    • PE Capital Property Development Opportunities Fund (P3 Fund);
    • PE Capital Asia Wholesale Diversified Income Fund; and
    • PE Capital Asia Wholesale Opportunities Fund.
  • Issued interests in the unregistered schemes without an Australian financial services licence (AFSL) or under a valid authorisation from an AFSL holder;
  • Held itself out as being a corporate authorised representative with the authority to issue information memoranda for, and units in, two unregistered schemes and various PE Capital special purpose vehicle trusts when it did not have such authority; and
  • Engaged in misleading and deceptive conduct by making statements in product disclosure statements (PDSs) for registered schemes regarding investment strategy and asset security.
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ASIC said it sought orders from the court to wind-up PE Capital Management and its registered and unregistered schemes, and obtain declarations that the firm acted in contravention of the Corporations Act and/or the ASIC Act.

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