This article is from the Australian Property Journal archive
The Australian Securities and Investments Commission has obtained declarations and orders in the Federal Court in Melbourne against a number of companies connected with an unregistered managed investment product known as the Investors Choice Fixed Interest Program (the scheme).
The companies are Royal Parade Properties Pty Ltd (formerly known as Investors Choice Pty Ltd), Vitalskill Management Pty and Infocus Management Australia Pty Ltd.
ASIC’s action follows an application to wind up the scheme in December 2005 after concerns that the companies had contravened the Corporations Act by operating an unregistered managed investment scheme with more than 20 investors, which was not registered with ASIC as required under the Act.
On December 20, 2005, the Federal Court made interim orders preventing the companies from operating the scheme, but permitting the assets of the scheme to be returned to the investors.
This ensured that all investors would receive repayment of all money invested by them together with interest by January 15, 2006. The repayments totalling approximately $2.8 million owed to 26 investors were completed by February 01, 2006.
Following repayment to the investors, the court made orders restraining the three companies until March 2011 from:
• promoting any managed investment scheme to members of the Australian public;
• dealing, offering or issuing financial products or generating interest in financial products;
• printing, publishing or distributing or causing to be printed, published, or distributed, written materials promoting managed investment schemes; or
• making any recommendation, or offering advice, whether orally or in writing, to any person in relation to a financial product or a decision by a person regarding whether or not to invest in a financial product.
The court also declared that the three companies had contravened the Act by operating a managed investment scheme without registration, failing to provide a Product Disclosure Statement for a financial product, and operating a financial services business without an Australian financial services licence.
By Kathryn O’Meara
