The Australian Securities and Investments Commission (ASIC) has issued a stop order on Product Disclosure Statements issued by Theta Asset Management Ltd (Theta). The stop order was due to concerns about Product Disclosure Statements for Sterling Income Trust (SIT), including inadequate disclosure of risks and conflicts of interests, omission of material information about the investment, presentation of prospective information about target returns, and outdated and incorrect references.

As a result an interim stop order was issued by ASIC on the Product Disclosure Statements issued for the following investment options in SIT:

• Development Units dated 20 May 2016;
• Income Units & Growth Units dated 31 January 2017; and
• Management Company Units dated 20 May 2016 (collectively, the PDSs).

Theta subsequently consented to a final stop order being made by ASIC. As a result, no offers, issues, sales or transfers of interests in SIT can be made under the PDSs while the final stop order is in force.

ASIC acknowledges the cooperative approach taken by Theta in responding to its concerns.

Background

Theta is the responsible entity of SIT. The Investment Manager of SIT is Sterling Corporate Services Pty Ltd (SCS) formerly known as Acquest Corporate Services Pty Ltd. SCS was recently ceased as a corporate authorised representative of Theta and is currently a corporate authorised representative of Libertas Financial Planning Pty Ltd.  Investors in SIT include some consumers who have acquired a Sterling New Life Lease marketed by Sterling First Projects Pty Ltd.