ASIC has commenced proceedings in the Federal Court in Brisbane against PE Capital Funds Management Ltd (PE Capital Funds Management) alleging misconduct in relation to the operation of managed investment schemes.

Following an investigation, ASIC alleges that PE Capital Funds Management:

• operated the following unregistered managed investment schemes (the Unregistered Schemes) in circumstances where these unregistered schemes should be registered:
• • PE Capital Property Development Opportunities Fund (P1 Fund);
  • PE Capital Property Development Opportunities Fund (P3 Fund);
  • PE Capital Asia Wholesale Diversified Income Fund; and
  • PE Capital Asia Wholesale Opportunities Fund.
• issued interests in the unregistered schemes without an Australian Financial Services Licence (AFSL) or under a valid authorisation from an AFSL holder;
• held itself out as being a corporate authorised representative with the authority to issue information memoranda for, and units in, two unregistered schemes and various PE Capital special purpose vehicle trusts when it did not have such authority; and
• engaged in misleading and deceptive conduct by making statements in Product Disclosure Statements (PDSs) for registered schemes regarding investment strategy and asset security.

ASIC is seeking orders from the Federal Court to:

• wind-up PE Capital Funds Management and its registered and unregistered schemes; and
• obtain declarations that PE Capital Funds Management has acted in contravention of the Corporations Act and/or the ASIC Act.

ASIC's investigation is continuing.

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Originating application (PDF 474 KB)

Background

PE Capital Funds Management and its associated entities operate the Unregistered Schemes and two registered managed investment schemes (the Registered Schemes): the PE Capital Monthly Yield Fund and the PE Capital Master Fund, which has the following subfunds:

• PE Capital Asia Diversified Income Fund;
• PE Capital Asia Wholesale Opportunities Fund;
• PE Capital Commercial Property Income Fund.

ASIC alleges that PE Capital Funds Management invested the funds raised via the Registered and Unregistered Schemes in eight PE Capital special purpose vehicles (the SPVs). ASIC also alleges that the invested funds were then utilised by the SPVs in the development of eight mixed use commercial and residential projects located throughout Victoria.

Editor's note:

The first case management hearing has been set for 11 June 2021.

Editor's note 2:

On 11 June 2021, the Federal Court made orders scheduling the exchange of pleadings by the parties. The next case management hearing has been set down for 16 September 2021.

Editor's note 3:

The matter was relisted for a case management hearing for the 9 September 2021. 

On the 9 September the Federal Court made orders setting down the matter for a half-day hearing on a date to be advised. The case was listed for a further case management hearing on 28 October 2021.

Editor's note 4:

The case management hearing for 28 October 2021 has been vacated and the hearing has been set down for 29 October 2021.

Editor's note 5:

A half day hearing in this matter was held before Justice Cheeseman on 29 October 2021. Her Honour reserved her decision.