ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.

Tuesday 9 April 2013

13-075MR ASIC suspends AFS licence of LM Investment Management Limited

ASIC has suspended the Australian financial services (AFS) licence of LM Investment Management Limited (LM) for two years.

LM is the responsible entity of the following registered managed investment schemes:

  • LM Cash Performance Fund

  • LM First Mortgage Income Fund;

  • LM Currency Protected Australian Income Fund

  • LM Institutional Currency Protected Australian Income Fund

  • LM Australian Income

  • LM Australian Structured Products Fund; and

  • The Australian Retirement Living Fund

LM also operates the unregistered LM Managed Performance Fund.

On 19 March 2013, the directors of LM appointed John Park and Ginette Muller of FTI Consulting as Voluntary Administrators.

The terms of the AFS licence suspension do allow the Voluntary Administrators to provide financial services such as transfer to a new responsible entity, investigating or preserving the assets or winding up the registered managed investment schemes operated by LM.

ASIC is continuing its inquiries in relation to the conduct of LM and will make no further comment at this time.

Background

Under section 915B(3)(b) of the Corporations Act 2001 (Corporations Act), ASIC can suspend or cancel an AFS licence if, among other things, an entity becomes an externally-administered body corporate.

Under section 915B(3)(b) of the Corporations Act the appointment of the Voluntary Administrators gave ASIC the power to suspend LM's AFS licence without a hearing.

Further information in relation to LM (including contact details of the administrators and useful links for investors)

Media centre

Receive media releases

Subscribe to the email distribution by sending your name, title, organisation, email address and contact phone numbers to media.subscription@asic.gov.au.

Follow us on Twitter @asicmedia

Last updated: 09/04/2013 12:00