ASIC has initiated civil proceedings against Fiducian’s subsidiary, alleging misleading statements and compliance failures related to a now-closed investment fund. Fiducian is cooperating but remains tight-lipped as the case unfolds.
- ASIC alleges misleading statements in Fiducian Diversified Social Aspirations Fund disclosure
- Claims of non-compliance with fund’s compliance plan and duties by Fiducian subsidiary
- Fund ceased operations in May 2024 due to lack of scale
- Fiducian subsidiary cooperating with ASIC investigations
- Fund delivered 7.62% annualised return over nine years before closure
ASIC Takes Legal Action Against Fiducian Subsidiary
The Australian Securities and Investments Commission (ASIC) has commenced civil proceedings against Fiducian Investment Management Services Limited (FIMS), a subsidiary of Fiducian Group Limited. The action relates to allegations that FIMS issued misleading statements in the product disclosure statement for the Fiducian Diversified Social Aspirations Fund and failed to comply with the fund’s compliance plan and its duties as the responsible entity.
Background on the Fiducian Diversified Social Aspirations Fund
The Fund, which ceased operations in May 2024 due to insufficient scale, had approximately $15.57 million in funds under management and 158 investors at closure. Over its nine-year lifespan, it delivered a respectable annualised return of 7.62%, accumulating an 86.61% total return since inception. Upon closure, two-thirds of investors chose to transfer their holdings into the Fund’s underlying investments, with FIMS absorbing the associated transaction costs.
Fiducian’s Response and Next Steps
FIMS is currently reviewing the court documents and the specific allegations made by ASIC. While the company has fully cooperated with ASIC’s investigations to date, it has declined to comment further as the matter is now before the NSW Supreme Court. Fiducian has committed to keeping the market informed in line with its disclosure obligations.
Implications for Fiducian and Investors
This legal development introduces a layer of regulatory scrutiny that could impact Fiducian’s reputation and investor confidence. Although the Fund in question is no longer active, the allegations touch on fundamental compliance and disclosure practices that are critical in the investment management sector. The outcome of the proceedings will be closely watched by market participants and regulators alike.
Bottom Line?
Fiducian faces a pivotal legal test that could reshape its regulatory standing and investor trust.
Questions in the middle?
- What specific statements in the product disclosure are alleged to be misleading?
- Could this legal action lead to broader regulatory scrutiny of Fiducian’s other funds?
- How might the court’s decision affect Fiducian’s future compliance and disclosure policies?