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15-313MR Provisional liquidators appointed to Avestra Asset Management Ltd
The Federal Court today appointed provisional liquidators to Queensland based Avestra Asset Management Ltd (Avestra) following an application brought by ASIC.
Avestra is the holder of an Australian financial services licence and responsible entity or trustee of a number of managed investment schemes. Avestra's schemes are managed funds which invest primarily in shares. The schemes the subject of the orders are:
- Valensworth Fund (ARSN 600 622 080)
- Managed Investment Account Service (ARSN 164 487 389)
- Avestra Advantage Fund (ARSN 136 421 497)
- Excela Australian Equity Income Accelerator Fund (ARSN 139 641 946)
- Emergent Fund (ARSN 130 533 747)
- Generator Fund (ARSN 127 699 754)
- Maximiser Fund (ARSN 130 533 685)
- Avestra Credit Fund
Richard Hughes and Simon Wallace-Smith of Deloitte will be required pursuant to the court order to conduct an investigation into Avestra, including seven registered managed investment schemes they currently operate, and report back to the court within 42 days (i.e. by 8 December 2015). Matters to be investigated include whether there have been any suspected contraventions of the law, any losses suffered by scheme members, and whether the schemes ought to continue in operation (under a new responsible entity) or whether they should also be wound up.
ASIC commenced proceedings following an investigation into concerns that Avestra had persistently contravened its duties in relation to a number of schemes, including to:
- act in the best interests of scheme members
- exercise the required degree of care and diligence
- carry out duties under its financial services licence efficiently, honestly and fairly.
ASIC is seeking final orders that Avestra be wound up on a just and equitable basis. The matter has been listed for further hearing on 11 December 2015.
Investor/client queries should be directed to Lea Kuflik of Deloitte on 07 3308 7150 or via email at firstname.lastname@example.org.
On 9 September 2015 ASIC commenced winding up proceedings in the Federal Court (refer: 15-256MR).
On 16 December 2014, Avestra was convicted and fined for breaching takeover laws, in relation to shares acquired by Avestra on behalf of various schemes (refer: 14-339MR).