The Adviser Committee for Investors (ACI) – representing independent financial investors based outside of Australia has criticised ASIC’s involvement in the collapse of Australian fund manager LM Investment Management (LMIM).
The ACI is comprised of more than 20 financial advisers in the international market, with clients located in Europe, the Middle East, Southeast Asia and the Far East and most of the clients were invested in LMIM’s Managed Performance Fund.
In a formal submission to the Senate inquiry into the corporate watchdog, ACI has indicated that its members had been greatly affected by the failure of LMIM and since they went into voluntary administration in March, the independent organisation has become increasingly concerned over the sequence of events that they say has failed to protect the investors both domestically and internationally.
The group said that the collapse of LM Investment Management was a body blow to Australia’s image, and to its reputation as a well-regulated financial services jurisdiction and has called into question the structure, organisation and fairness of ASIC stating that, “the handling of LMIM’s collapse by those that were granted access and responsibility has not been satisfactory. Investors have been left confused and distressed.”
The submission also stated that ACI welcomes a Senate inquiry into ASIC and questions the corporate regulator’s effectiveness in protecting consumers.