Linchpin, Endeavour placed into liquidation
Managed investment scheme operators, Linchpin and Endeavour, have been placed into liquidation following action in the Federal Court by the Australian Securities and Investments Commission (ASIC), after the companies and their schemes were sought to be wound up in July last year.
The court also ordered that the registered scheme operated by Endeavour and the unregistered scheme operated by Linchpin, both named Investport Income Opportunity Fund, be placed into liquidation.
Both operators of the managed investment scheme agreed to the declarations of contravention against the Corporations Act, and the liquidation of both companies and both funds.
The findings agreed upon included that Endeavor, as a responsible entity, did not act in the best interests of the members of the registered scheme; failed to ensure that the financial services it provided were done so efficiently and fairly; and engaged in related party transactions without member approval.
As well, Linchpin was found to have operated an unlawful managed investment scheme without an Australian Financial Services License; and engaged in conduct that was likely to mislead od deceive.
In making the orders, Justice Derrington said, given the length and breadth of the non-compliances with the Act, there was more than sufficient justification for the winding up of both companies.
Deloitte’s Jason Tracy and David Orr have been appointed as liquidators of the companies and the two funds.
AUTHOR
Anastasia Santoreneos
Recommended for you
The Reserve Bank of Australia (RBA) has lowered rates to a level not seen since mid-2023.
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
