The corporate regulator has been working with IFS to resolve an identified breach of a regulatory class order.
Responsible entities operating under the class order are restricted from investing in unregistered managed investment schemes on behalf of members, according to ASIC.
IFS recently changed its investment options after a review of their industry fund portfolio service found they were in breach of the class order.
“IFS had been investing in unregistered schemes on behalf of members since May 2012. IFS identified the breach in November 2013 and raised it with ASIC. ASIC has since been working with IFS to resolve this matter in the interests of investors,” said an ASIC statement.
ASIC Commissioner Greg Tanzer stressed the importance of licensees identifying where a “technical breach of the law can result in the potential loss of key protection measures for investors”.
However, the regulator added that “IFS acted promptly and in a way that protected members’ interests throughout the process”.
IFS moved client funds to compliant investments in February 2014, according to the statement.
“ASIC considers the aspect of the class order breached by IFS is a key protection for investors. Investors should not lose any protection because they acquire interests in a managed investment scheme indirectly through a platform,” said ASIC.
IFS has informed affected members about the change to their investment, and no loss for members has been identified, said the statement, adding that “ASIC acknowledges the cooperative approach taken by IFS in this matter”.
Be interesting to know what the “unregistered schemes” actually were, and whether there was any related party or in-house issues. Do, or did, the schemes have any relationship with anything or anyone with any link to Industry Super? Can someone shed any light on the details?
No enforced undertaking ?
No names of advisers?
No name of responsible person/s who allowed an unregistered fund to be on the “approved list”…
No values of funds ill invested / lost / loss of earnings or funds.
Why are we surprised that there is one outcome for independent advisers & banks, and another for industry fund managers! Because it’s “just not cricket” ASIC
Will the ABC run a special on this extraordinary situation of “illegal practices” ….. I doubt it very much as it does not play into their “LEFT hands”..
I only have three words to say on this…”pot” “kettle” “black”
Dear me.
Oh how the mighty have fallen. The sanctimonious now swallowing pride.
Welcome to the swamp !!
PS ASIC-where is the Enforceable Undertaking?
Very telling that everytime a union fund or big bank aligned group gets busted they get a “thanks very much for co-operation” from ASIC. Never seen one of these when an IFA is getting banned – maybe we are just less co-operative!
Well well Well. See how simple it is to get this investing thing all so very wrong. Supposedly no loss to members suffered, but perhaps a fall in income recevied perhaps not. It just goes to show that despite all the efforts of all the people mistakes still get made. Perhaps it is a salutory lesson for industry fund spruikers and protaganists that gentleness and consideration needs to be applied as everyone can make mistakes. David Whiteley are you listening as your silence on this naughty naughty industry fund planning group is deafening. But we must all show compassion as mentioned earlier ereryone makes mistakes.
I would like to know what the unregistered schemes were. I think I might apply for a job with IFS….all salary, no commissions, and no responsibility.
Protected species. Transparency is not a high priority with IFS that’s obvious. Cowboys with other peoples money that they think is their play thing.
If this was a private sector breach, they would have to sign an enforceable undertaking. Why are industry funds exempt?