ASIC has commenced proceedings in the Federal Court in Brisbane against PE Capital Funds Management Ltd (PE Capital Funds Management) alleging misconduct in relation to the operation of managed investment schemes.
Following an investigation, ASIC alleges that PE Capital Funds Management:
– operated the following unregistered managed investment schemes (the Unregistered Schemes) in circumstances where these unregistered schemes should be registered:
- PE Capital Property Development Opportunities Fund (P1 Fund);
- PE Capital Property Development Opportunities Fund (P3 Fund);
- PE Capital Asia Wholesale Diversified Income Fund; and
- PE Capital Asia Wholesale Opportunities Fund.
– issued interests in the unregistered schemes without an Australian Financial Services Licence (AFSL) or under a valid authorisation from an AFSL holder;
– held itself out as being a corporate authorised representative with the authority to issue information memoranda for, and units in, two unregistered schemes and various PE Capital special purpose vehicle trusts when it did not have such authority; and
– engaged in misleading and deceptive conduct by making statements in Product Disclosure Statements (PDSs) for registered schemes regarding investment strategy and asset security.
ASIC is seeking orders from the Federal Court to:
– wind-up PE Capital Funds Management and its registered and unregistered schemes; and
– obtain declarations that PE Capital Funds Management has acted in contravention of the Corporations Act and/or the ASIC Act.
ASIC’s investigation is continuing.