ASIC obtains interim orders against managed fund

ASIC federal court managed funds

19 June 2024
| By Laura Dew |
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ASIC has obtained interim orders from the Federal Court to freeze the assets of a managed fund in order to protect investor funds during an ongoing investigation. 

The court froze the assets of Shield Master Fund, a managed fund whose responsible entity (RE) is Keystone Asset Management, to help protect investor funds while an investigation is continuing. 

ASIC had previously made interim stop orders on 7 February to stop Keystone from offering, issuing, selling or transferring interests in the Balanced class, Growth class, High Growth class and Conservative class units of the fund. 

These stop orders were subsequently revoked on 9 April following a notice from Keystone that the funds were no longer available to new clients. 

On 18 June, Justice O’Callaghan ordered that Keystone is restrained from: 

  • Removing property from Australia, 
  • Selling, charging, mortgaging, dealing with or disposing of property, 
  • Incurring new liabilities, or 
  • Withdrawing, transferring, disposing of, or dealing with money held in bank accounts or with a financial institution (subject to limited exceptions). 

The court made orders that Paul Chiodo, a former director of Keystone, surrender his passport and be restrained from leaving Australia. ASIC sought these orders to ensure Chiodo, as a former director of Keystone, remains in Australia while ASIC continues its investigation.

As the hearing was held in their absence, Keystone and Chiodo have not yet had the opportunity to respond to ASIC’s application.  

A further court hearing is listed to take place on Tuesday, 25 June 2024.

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