Australia’s securities regulator has imposed interim restrictions on two funds managed by Angas Securities. It is concerned about disclosure of the manager’s financial position and one fund’s exposure to the collapsed Bathla Group. The orders cover offering, issuing, selling and transferring fund interests. The regulator will hear Angas before considering whether to make the restrictions final.
Australia’s securities regulator ASIC has temporarily blocked transactions in two investment funds run by Angas Securities over concerns about risk disclosures. The orders apply to the Angas Prime Income Fund and Angas Direct Mortgage Fund. They prevent the offering, issuing, sale or transfer of interests in those schemes.[1], [2]
ASIC said both funds’ disclosure statements omit important information about the manager’s net asset deficiency, capital requirements and proposed capital raising. Its concerns also cover what could happen if Angas cannot secure enough capital to continue operating. For Prime, the regulator identified inadequate information about exposure to the collapsed Bathla Group, defaults, liquidity and portfolio diversification.[1]
At the end of June, the two schemes held approximately 114 million Australian dollars of investor money. Angas’s financial statements link its failure to meet licence capital requirements to a mortgage investment loss unrelated directly to Bathla. Its directors said the capital raising issue could be resolved by December 31. ASIC will give Angas an opportunity to be heard before considering final stop orders.[1]
