ASIC has obtained various interim orders in the Supreme Court of Queensland against Equititrust Limited, the responsible entity of two managed investment schemes, constraining the manner in which Equititrust is permitted to operate the schemes.
The two schemes are Equititrust Income Fund (EIF) and Equititrust Priority Class Income Fund (EPCIF).
The orders were obtained by consent for the purpose of preserving the status quo of the schemes prior to a hearing by ASIC to consider the suspension of Equititrust’s Australian financial services (AFS) licence and following resolutions made by Equititrust’s Board of Directors on 12 October 2011 that the purposes of EIF could not be accomplished and to take steps to wind up EIF.
The orders obtained by ASIC on 27 October 2011 restrain Equititrust from undertaking various acts regarding its operation of the schemes until 12 December 2011 or earlier order of the Court.
Among other things, in relation to EIF, the orders restrain Equititrust from:
- modifying or replacing the scheme’s constitution
- issuing new interests in the scheme
- redeeming, cancelling or modifying existing members’ interests in the scheme
- dealing with property held or controlled by Equititrust in its capacity as the responsible entity of the scheme or in its own right, other than in the ordinary course of business
- entering into contracts, deeds or agreements regarding any property held or controlled by Equititrust with any person that is a related party or related entity.
The orders in relation to EPCIF restrain Equititrust from issuing new interests in the scheme without first providing written notice to ASIC.