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)

Editor's note 1:

On 11 March 2022, ASIC extended the suspension of the AFS licence held by LM (AFSL No. 220281) in response to requests from the liquidator. The AFS licence is suspended until 15 March 2024.

Editor's note 2:

On 14 March 2024, ASIC further extended the suspension of the AFS licence held by LM (AFSL No. 220281) in response to requests from the liquidator. The AFS licence is suspended until 16 March 2026.