LAWFUEL – The Australian Securities and Investments Commission (ASIC…

LAWFUEL – The Australian Securities and Investments Commission (ASIC) today released further information on three matters of significant public interest.

The update details recent activity in the Westpoint, Fincorp and Australian Capital Reserve (ACR) matters and follows similar statements released by ASIC Chairman, Mr Tony D’Aloisio to the Senate Standing Committee on Economics on 30 May 2007.

‘In the period since 30 May 2007, ASIC’s emphasis has been on examining ways to ensure the largest possible pool of funds is available to investors’, Mr D’Aloisio said.

In respect of Westpoint, since the 30 May 2007 statement, ASIC has:

• Examined the role and conduct of related parties and advisers and has been discussing these matters with the liquidators of the mezzanine companies, licensees and Slater and Gordon lawyers, who already represent a large number of investors in recovery proceedings. This will facilitate ASIC’s determination of whether compensation (e.g. under section 50 of the ASIC Act) is available. ASIC expects to make decisions on these matters by 31 October 2007.
• Referred two criminal briefs to the Commonwealth Director of Public Prosecutions in relation to unlicensed operators.
• Commenced investigations into a further six licensees and five authorised representatives who advised on Westpoint products, with 16 briefs for bannings currently progressing through the adjudication process.
In respect of Fincorp, since the 30 May 2007 statement, ASIC has:
• Successfully applied for freezing orders to ensure assets of various individuals and companies associated with Fincorp are not shifted or dissipated to the detriment of creditors and investors.
• Worked with KordaMentha (the administrator) to examine any potential wrongdoing by former Fincorp directors and officers.
• Continued to examine the role and conduct of related parties and advisers.
• Continued to consider whether actions to maximise compensation are available.
In respect of ACR, since the 30 May 2007 statement, ASIC has:
• Worked with administrators on strategies to maximise the return for noteholders and creditors.
• Made inquiries into the affairs of ACR and continued working with administrators on potential avenues for further investigation.
• Commenced reviewing the advertising and disclosure by ACR, investments made subsequent to the 9 March 2007 interim stop order on ACR’s final prospectus and valuations on development properties.

The full update on Westpoint, Fincorp and ACR can be found at www.asic.gov.au.
For further information contact:
Danielle Huck
ASIC Media Unit
Telephone: 03 9280 3407
Mobile: 0417 540 769
Page

Scroll to Top