Australian Securities & Investments Commission applies for Federal Court receivers and asset preservation orders over Australian Fiduciaries schemes

The Australian Securities & Investments Commission (ASIC) has applied to the Federal Court for asset preservation orders and the appointment of receivers to Australian Fiduciaries Ltd and numerous related entities, as it continues investigating the firm’s managed investment schemes. The application is intended to preserve scheme assets and clarify the financial position of Australian Fiduciaries and its schemes while inquiries continue. ASIC understands that around 600 Australian retail investors invested approximately AUD 160 million in Australian Fiduciaries’ schemes since February 2020, predominantly via self-managed super funds, and that the firm ceased distributing units in September 2023. ASIC stated that Australian Fiduciaries has not lodged audited financial statements or audited compliance plan reports for its registered managed investment schemes for FY2024 or the first half of FY2025, and has not kept investors updated on the status of their investments since May 2024. The investigation is focusing on potential conflicts of interest, the sale of units and subsequent investment of funds into a complex related-party group, suspected failures to conduct regular scheme valuations, and loss of value in underlying assets. The Court hearing date for ASIC’s application has not yet been set.