Court freezes assets of Keystone AM managed fundBY ELIZA BAVIN | THURSDAY, 20 JUN 2024 12:44PMThe Australian Securities and Investments Commission (ASIC) has obtained interim orders from the Federal Court to freeze the assets of the Shield Master Fund (Shield), a registered managed fund overseen by Keystone Asset Management. ASIC said it sought the orders to help protect investor funds while an investigation is continuing. Justice O'Callaghan ordered that Keystone is restrained from removing property from Australia; selling, charging, mortgaging, dealing with or disposing of property; incurring new liabilities; or withdrawing, transferring, disposing of, or dealing with money held in bank accounts or with a financial institution (subject to limited exceptions). The court also made orders that former Keystone director Paul Chiodo surrender his passport and be restrained from leaving Australia. ASIC said it sought the orders to ensure Chiodo remains in Australia while it continues its investigation. As the hearing was held in their absence, Keystone and Chiodo have not yet had the opportunity to respond to ASIC's application. A further Court hearing is listed to take place on Tuesday, 25 June 2024. This action follows previous action that ASIC took in February 2024 to halt new offers of investments in Shield. The interim orders stopped Keystone from offering, issuing, selling, or transferring interests in the balanced class, growth class, high growth class and conservative class units of the fund. ASIC said it made the interim orders to protect retail investors from acquiring products under PDSs that may be defective and not worded and presented in a clear, concise, and effective manner. Following the interim stop orders made on 21 February 2024, Keystone lodged notices with ASIC stating products under the four PDSs had ceased to be available to new clients as of 1 April 2024. ASIC subsequently revoked the interim stop orders on 9 April 2024. Related News |
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