The corporate watchdog has received Federal Court approval to wind up Finchley Central Funds Management, which is likely to impact investors that have poured a collective $40 million into two trusts.
The corporate watchdog has received Federal Court approval to wind up Finchley Central Funds Management, which is likely to impact investors that have poured a collective $40 million into two trusts.
The Australian Securities and Investments Commission today obtained orders from the Federal Court of Australia in Perth to wind up Finchley, formerly Kebbel Funds Management, which is understood to have raised most of Westpoint's capital.
Finchley is the responsible entity of a registered managed investment scheme known as Finchley Development Capital Funds, which comprises two active trusts that together have raised more than $40 million from retail investors.
ASIC's application in August to have Finchley wound up alleged that such a move was just and equitable because the trusts could be overseen and supervised by an independent party that would assist in the protection of investors' interests.
It was also just and equitable because Finchley "had failed and continued to fail to comply with legal obligations", ASIC said in its application.
Sheridans Chartered Accountants principal Jennifer Low was appointed by the court as Finchley's liquidator.
The announcement is below:
On 22 September 2009, ASIC obtained orders from the Federal Court in Perth to wind up Finchley Central Funds Management Limited (Finchley).
Jennifer Low of Sheridans Chartered Accountants was appointed by the Court as the liquidator for Finchley.
Finchley is the responsible entity of a registered managed investment scheme known as Finchley Development Capital Funds (FDCF). Within FDCF there are two active trusts which have raised funds from retail investors:
- FDCF No. 2: 'The Gilead Trust', which has more than 600 members who have invested in excess of $25 million. These funds have been on-lent as mezzanine finance to the developer of the Gilead Retirement Resort in New South Wales; and
- FDCF No. 3: 'The Riverside Trust', which has more than 300 members who have invested in excess of $15 million. These funds have been on-lent as mezzanine finance to the developer of the Riverside Pier Hotel in Western Australia.
ASIC issued a Court application against Finchley on 4 August 2009, alleging that it was just and equitable that Finchley be wound up by the Court because:
Finchley and its officers had failed and continued to fail to comply with their obligations under the law; and
a winding up order would allow FDCF, the Riverside Trust and the Gilead Trust to be overseen and supervised by an independent party which would assist in the protection of investors' interests.
ASIC's Court application to wind up the company arose from an ongoing ASIC investigation into the conduct of Finchley and its officers.
