Avestra Asset Management set for investigation
The Federal Court of Australia have appointed provisional liquidators Richard Hughes and Simon Wallace-Smith of Deloitte to conduct an investigation into Avestra Asset Management, including seven registered managed investment schemes they currently operate.
The investigation comes in response to an application by the Australian Securities and Investments Commission (ASIC) to examine whether there have been any suspected contraventions of the law, any losses suffered by scheme members, and whether the schemes ought to continue in operation (under a new responsible entity) or whether they should also be wound up.
Currently, Avestra is the holder of an Australian financial services licence (AFSL) and are a responsible entity or trustee of a number of managed investment schemes.
On 16 December 2014, Avestra was convicted and fined $40,000 for breaching takeover laws in relation to shares acquired by Avestra on behalf of various schemes.
ASIC Commissioner, Cathie Amour, said at the time that investors were "entitled to know" the identity of the major shareholders of publicly traded companies.
"ASIC expects businesses to comply with important takeover laws that promote market integrity and provide significant safeguards when the control of a listed company changes," Amour said.
ASIC have now commenced proceedings following an investigation into concerns that Avestra had persistently contravened its duties, including the need to act in the best interests of scheme members, exercise the required degree of care and diligence, as well as carry out duties under its financial services licence "efficiently, honestly and fairly".
ASIC is seeking final orders that Avestra be wound up on a just and equitable basis, with Hughes and Wallace-Smith set to report back to the court by 8 December. The matter has been listed for further hearing on 11 December.
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