ASIC issues stop order on Theta products
The Australian Securities and Investments Commission (ASIC) has issued a stop order on product disclosure statements (PDS) issued by Theta Asset Management due to concerns the regulator had with regards to the PDS for the Sterling Income Trust (SIT).
According to ASIC, it included inadequate disclosure of risks and conflicts of interests, omission of material information about the investment, presentation of prospective information about target returns, and outdated and incorrect references.
As a consequence of ASIC’s decision, no offers, issues, sales of transfers in SIT can be made under the PDSs while the final stop order is in force.
ASIC also informed that an interim stop order was issued by ASIC on the Product Disclosure Statements issued for the following investment options in SIT:
- Development units dated May 20, 2016
- Income units and growth units dated January 31, 2017
- Management company units dated May 20, 2016
The regulator said it had acknowledged the cooperative approach taken by Theta in responding to its concerns.
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