Aurora Funds Management has entered into an enforceable undertaking with the corporate regulator after an investigation found non-compliance.
In a statement, ASIC said it has conducted surveillance of Aurora which found a number of “failings in Aurora's practice of making on-market acquisitions and disposals of units in those schemes”.
Specifically the statement indicates ASIC is concerned the fund manager did not comply with substantial holdings disclosure obligations and that it breached the “20 per cent prohibition in respect of one of its listed funds” in acquiring a number of units on market between 2007 and 2013.
Under the terms of the EU, Aurora has agreed to cancel or redeem all relevant units and to ensure it complies with ASIC class orders in the future.
“ASIC established a regime in [CO 07/422] to facilitate on-market buy-backs of units in listed funds by their REs,” said ASIC commissioner Greg Tanzer.
“This regime is intended to protect members' interests and provide greater liquidity while facilitating an informed market. If Aurora had followed the class order regime, these issues are unlikely to have arisen.”
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