The Australian Securities and Investments Commission has cancelled the Australian financial services licence held by Teys Property Funds Limited which is under external administration.
Teys, now known as TPFL, is the responsible entity of 11 property and mortgage funds.
ASIC’s decision to cancel the licence was taken after discussions with the external administrators of Teys to ensure the timing of the cancellation would not adversely impact investors in the managed investment scheme operated by Teys.
Teys went into external administration on 5 March 2010. Adam Shepard of Setter Shepard was appointed as administrator on 5 March 2010. Under the Corporations Act, ASIC has the power to suspend or cancel an AFS licence if the responsible entity holding the licence is placed under external administration without holding a hearing.
Teys received from ASIC, on 24 December 2009, a notice of hearing under Section 915C of the Corporations Act regarding concerns held by ASIC that Teys may not have complied with, and may not comply with, its obligations under the terms of its AFS licence.
A hearing to consider the suspension or cancellation of Teys AFS licence was due to occur on 11 March 2010, however it was adjourned as a result of the appointment of Shepard.
In deciding when to exercise that power, ASIC has primary regard to the interests of investors in any fund operated by that responsible entity. The cancellation of Teys AFS licence is subject to a specification that it continues to the extent necessary to enable Teys, under the control of the external administrator, to take steps to wind up its property and mortgage schemes.
