Australian Fiduciaries Limited

ASIC takes steps to appoint receivers to Australian Fiduciaries Ltd as investigation continues

ASIC has applied to the Federal Court, seeking asset preservation orders and the appointment of receivers to Australian Fiduciaries Ltd and numerous related entities.

ASIC understands that around 600 Australian retail investors have invested approximately $160 million into managed investment schemes offered by Australian Fiduciaries since February 2020, predominantly through their self-managed super funds (SMSFs). Australian Fiduciaries ceased distributing units in the schemes in September 2023.

ASIC’s application seeks to preserve the assets of the scheme and obtain a clearer picture of the financial position of Australian Fiduciaries and its schemes while ASIC continues its investigation.

Australian Fiduciaries has failed to lodge audited financial statements or audited compliance plan reports for its registered managed investment schemes for FY2024 or the first half of FY2025. ASIC understands that it has also failed to keep investors updated on the status of their investments since May 2024.

ASIC is investigating concerns around:

• inadequate management of conflicts of interest
• the ways investors were sold units in the schemes and how their funds were ultimately invested into a complex group of entities controlled by related parties
• suspected failure by Australian Fiduciaries to conduct regular valuations of its schemes, and
• loss of value in the underlying assets.

Investors can find further information and a full list of the entities ASIC is seeking orders against on the Australian Fiduciaries webpage on ASIC’s website.

ASIC’s application will be heard by the Court on a date yet to be set.

About Australian Fiduciaries Ltd

Australian Fiduciaries Limited ABN 22 601 228 844 (‘AFL’) is a Brisbane based, ASIC licensed (AFSL No. 465658), financial services firm that was established by a team of financial industry professionals to act as a trustee or responsible entity for innovative managed investment schemes, including highly diversified, multi-asset class investment strategies. In its role as responsible entity of a registered managed investment scheme, AFL is responsible for ensuring that the Fund is operated in accordance with the Fund’s constitution, which has been lodged with the Australian Securities and Investments Commission (‘ASIC’). For each registered scheme, a compliance plan has also been lodged with ASIC and AFL has appointed an independent compliance committee to periodically review the adherence of each registered scheme to its compliance plan, which sets out the key processes, systems and structures that AFL will apply to ensure compliance with the Corporations Act, the Fund’s constitution and financial services laws. Each compliance plan is required to be audited annually and the audit report is lodged with ASIC.To assist AFL in performing its duties as the responsible entity of each registered scheme, AFL has appointed a series of independent service providers, as follows:an independent custodian to hold all Fund assets;an independent fund administrator to perform fund accounting, valuations, administration and unitholder reporting; andan auditor to audit the Fund’s financials and compliance plan. Further information on AFL and the service providers for each registered scheme can be found in the relevant Product Disclosure Document (PDS).AFL may also, from time to time, act as the Trustee of unregistered managed investment schemes and where this is the case, details will be provided in the relevant offer document.

During December 2023, a new Board of AFL was appointed. The new directors bring a wealth of experience to AFL as detailed below:

• Angelo Venardos (Independent Chair) 
  Angelo brings over four decades of distinguished experience in the private, public and not- for-profit sectors to the role of Chairperson of AFL. With a robust background as a seasoned lawyer and familiarity with the financial services sector, Angelo's career includes notable positions at various law firms. His experience includes a tenure at ASIC, which highlights his regulatory expertise offering valuable insight into compliance matters. This is supported by his longstanding membership on the Compliance Committee at Shakespeare Haney Securities Limited. 
• Brian Lenz (Independent director) 
  Brian is an accomplished senior executive with over 30 years of versatile experience across various industries, demonstrating consistent success in building, growing and enhancing the performance of companies in both the private and not-for-profit sectors. Serving in various senior positions, Brian showcases his leadership acumen and strategic prowess in steering the organisation. Brian's expertise lies in identifying and leveraging business opportunities, showcasing highly developed skills in analytics, finance, risk management, change management and project management.
• Lachlan Rowlands (Non-independent director) Lachlan contributes a wealth of knowledge and expertise to AFL. His diverse qualifications include a Juris Doctor of Law and a Graduate Certificate of Anti Money Laundering and Counter Terrorism Funding. In addition to his legal q ualifications and experience in financial services, Lachlan holds certifications in government compliance and investigations. Lachlan's extensive background in legal practice, coupled with his regulatory and investigative roles, positions him as a valuable director contributing unique insights and skills to AFL.

© 2018 Australian Fiduciaries Limited ABN 22 601 228 844 (‘AFL’) is the holder of AFS Licence number 465658. Before making a decision to invest in a financial product, investors should carefully review the Product Disclosure Statement (PDS) or Information Memorandum (IM), as applicable, and consider whether the investment is appropriate to their needs, objectives and circumstances. The past performance of any investment is not a reliable indicator of future performance.