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ASIC seeks fund wind-up orders

The corporate regulator has made submissions to the Queensland Supreme Court seeking orders to wind up a multi-million dollar fund run by a collapsed investment manager.

In a statement released today, the Australian Securities and Investments Commission revealed it has made submissions to the court this week seeking orders that the LM First Mortgage Income Fund, of which collapsed LM Investment Management Limited (LMIM) is responsible entity, be wound-up.

It is also seeking orders that registered PricewaterhouseCoopers liquidators be appointed as receivers of the fund.

The regulator said it is intervening in the matter in order to avoid lengthy litigation proceedings.

“ASIC took this action as it believes that the appointment of receivers to the FMIF will allow the winding-up to proceed in the most efficient and cost effective way to provide the best chance of achieving the maximum return for investors,” ASIC Commissioner Greg Tanzer said.

“As such, ASIC believes that the persons responsible for winding-up the FMIF should be appropriately independent.

“It is ASIC’s view that the protracted litigation surrounding the FMIF is not in the best interests of investors and wishes to see the matter resolved as soon as possible.”

It emerged earlier this year that the $3.1 billion LMIM was entering voluntary administration as it could not pay a number of creditors.

A spokesperson for LMIM told ifa in March that the four risk advisers who operate under its AFSL do not write any business for its funds and would therefore not be affected by the administration.