The Australian Securities and Investments Commission (ASIC) has suspended the licenses of Theta Asset Management and Valuestream Investment Management, both of which are in external administration.
The license suspensions apply until 21 July.
ASIC said that although it had suspended the licenses it had used its powers under the Corporations Act to allow the administrators to conduct certain necessary activities under the licenses during the administration.
Theta Asset Management is the responsible entity for the Sterling Income Trust and on 11 December, last year, ASIC commenced action in the Federal Court in Western Australia focused on the promotion of and management of the Sterling Income Trust.
ASIC alleges in that action that Theta and a director, Robert Patrick Marie, were responsible for authorising the issue of five product disclosure statements for the Sterling Income Trust while failing to ensure that each of them was not defective.