ASIC has cancelled the Australian Financial Services Licence held by City Pacific Limited (in liquidation).

ASIC's decision to cancel the Australian Financial Services Licence (AFS Licence) was taken after discussions with the liquidators of City Pacific to ensure the timing of the cancellation would not adversely impact investors in the remaining managed investment scheme operated by City Pacific.

Background

On 25 June 2009, investors in the former City Pacific First Mortgage Fund (now known as the Pacific First Mortgage Fund) voted to remove City Pacific as responsible entity of the Fund, and replace it with Trilogy Funds Management Limited.

On 28 August 2009, the Federal Court of Australia ordered the winding up of City Pacific and the appointment of Andrew Wily and David Hurst as joint liquidators. City Pacific remains the responsible entity of a smaller managed investment scheme known as the City Pacific Income Fund.

Under the Corporations Act, ASIC has the power to suspend or cancel an AFS Licence if the responsible entity holding the licence is placed into liquidation. In deciding when to exercise that power, ASIC has primary regard to the interests of investors in any funds operated by that responsible entity.

The cancellation of City Pacific's AFS Licence is subject to a specification that it continues to the extent necessary to enable City Pacific, under the control of the liquidators, to take steps to wind up the City Pacific Income Fund.