14 April 2020 – MELBOURNE, AUSTRALIA
CONCERNS ASIC ACTION COULD DISRUPT REVITALISATION OF DUNK ISLAND
The Australian Securities and Investments Commission's (ASIC) legal action against the Mayfair 101 Group is sparking concerns that the much-anticipated redevelopment of Dunk Island and Mission Beach could be delayed or halted.
The Mayfair 101 Group has rejected claims made by ASIC in the Federal Court that Mayfair 101 Group entities have engaged in misleading or deceptive conduct with respect to products offered to wholesale investors. The Mayfair 101 Group has stated it will vigorously defend the proceedings.
The Mayfair 101 Group is behind the much-anticipated redevelopment of Dunk Island and Mission Beach. The estimated $1.6 billion Queensland project is supported by Mission Beach residents and is bringing much-needed employment opportunities and economic activity to the region.
Local community member and economist Pete Faulkner said, "Our region has had too many false starts and to date, Mayfair 101 has demonstrated significantly more promise and action than we've previously seen. Their activities have already led to increased employment and economic activity, and a more positive outlook for our community."
A spokesperson for the Mayfair 101 Group said, "The Mayfair 101 Group remains committed to revitalising Mission Beach, Dunk Island and the surrounding region. However, we are concerned that this unwarranted action by ASIC has the potential to disrupt our strong progress in the region."
ASIC's action also came as some media reports criticised the Group's decision to temporarily suspend redemptions on 11 March 2020 in response to COVID-19, a step that is generally taken by fund managers to protect the value of their assets and preserve liquidity during periods of uncertainty.
Last week, it was widely reported that superannuation fund Hostplus has updated its product disclosure statement to say it had "absolute discretion" to "suspend or restrict" applications for cash withdrawals and redemptions. A spokesperson for the Mayfair 101 Group expressed frustration that ASIC was "happy to overlook superannuation funds updating their disclosure documents about freezing redemptions or banks limiting cash withdrawals to just $5,000 at some branches, but felt the need to target the Mayfair 101 Group, which has ultimately acted in accordance with our rights and in the best interests of our investors during an unprecedented global crisis."
Lawrence Aubert, a long-term investor with the Mayfair 101 Group, stated, "Interest rates offered by banks on term deposits are horrendously low given their profit margins, so alternatives like Mayfair 101's products are a good fit given the current low rate environment. I particularly like the fact that their investments have a strong social component. Having been in business my whole life, I knew the risks I was taking and considered their product to be the right fit for me."
