APT’s licence authorised it to operate managed investment schemes and act as a responsible entity, among other things. It operated two such schemes, both of which invest in direct real property.

ASIC surveillance found that APT failed to:

• comply with the financial conditions of its licence, and
• lodge audited financial reports on time for APT and the schemes it operated.

Commissioner Greg Tanzer said that to help ensure confident and informed investors, schemes wanting to take on the responsibility of managing investors’ money must be backed by REs with appropriate financial substance.

‘ASIC imposes financial conditions on licensees to help ensure that they have adequate financial resources to provide the services covered by their licence. ASIC will not hesitate to take action where licensees fail to meet these requirements’ Mr Tanzer said.

‘Companies also have obligations that are central to ensuring the transparency and accountability of the reporting process. These obligations must be complied with to ensure users of financial reports like unit holders and creditors have the information available to help them make informed decisions.’

APT has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

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