ASIC takes action against Marco’s managed investment scheme
The Australian Securities and Investments Commission (ASIC) has taken further steps to wind up Chris Marco’s alleged unregistered managed investment scheme, and a related company, operated by Marco.
The regulator said it filed an application seeking leave to apply for further orders in the Federal Court in Western Australia to wind up the firms. Additionally, ASIC was seeking declarations that Marco failed to hold an Australian Financial Services Licence (AFSL) whilst carrying on a financial services business.
The application was filed against Chris Marco, who traded as Coastline Group, and the related companies were: AMS Holdings and AMS Holdings in its capacity as trustee of AMS Holdings Trust.
According to the corporate regulator, Marco was raising funds from investors since January 2010, in contravention of the Corporations Act, and in total received approximately $240 million from 132 investors.
ASIC would be seeking to appoint a receiver over Marco’s and AMS’ assets and, by way of final relief, orders to wind up the scheme and AMS, it said, as there was a very significant shortfall in the assets available to operate the scheme into the future.
There is also ASIC’s investigation into other aspects of the alleged conduct of Marco and AMS.
The first case management hearing is listed for 17 December 2019.
AUTHOR
Oksana Patron
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
