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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.
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)