Millinium sues former adviser for $2.4m
Millinium Capital Managers has made a claim worth $2.4 million against a former adviser of the Millinium Alternative Fund (MAX) for misconduct.
According to a filing on the Australian Stock Exchange today, the claim follows an investigation by the company into its MAX fund.
It alleges the former adviser recommended the fund sell certain shares it owned in a listed company, despite the adviser being in possession of material information about said company. If this information had been disclosed, it would have led to MAX retaining its shares, which had since increased in price.
If the shares had not been sold, MAX would have been $1.6 million better off, the company said.
The firm was also seeking $793,000 in expenses paid or incurred to the adviser, his company or other representations.
It said the $2.4 million sum was ‘material’ when compared to MAX’s net tangible assets.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.