On Sept. 30, the Queensland Supreme Court ordered A.C.N. 114 733 569 Limited, previously known as ISG Financial Services (ISG), to wind up its managed investment schemes, ASIC reported.
The two schemes involved are the ISG Private Access Fund and the ISG Real Estate Equity Fund.
The court’s decision follows concerns over ISG’s financial and governance issues, as flagged by ASIC.
Receivers from Olvera Advisors have been appointed to oversee the winding-up process.
Following ISG’s request to appoint receivers in August, ASIC intervened, citing concerns about ISG’s compliance and financial stability.
Investors also voiced their preferences for different receivers than those initially proposed by ISG.
The court ultimately agreed with ASIC and the investors, appointing Neil Robert Cussen, Anthony Phillip Wright, and Katherine Barnet of Olvera Advisors as the official receivers.
The receivers are tasked with managing the wind-up and will report back to the court by Nov. 11.
The appointed receivers will review the assets, liabilities, and potential claims against ISG and its directors, ASIC said.
They will also assess the solvency of the schemes and estimate potential returns to creditors and investors. The court has ordered that the receivers’ reasonable costs will be covered by the assets of the schemes.
ISG, which has held an Australian Financial Services Licence (AFSL), has been managing investment schemes that have raised approximately $145 million from investors since 2019.
However, the company has faced regulatory scrutiny over the past few years.
In 2022, ASIC suspended ISG’s AFSL due to failures in financial reporting and lack of required insurance coverage, though the suspension was later lifted in early 2023. ISG has since ceased paying distributions to investors and froze redemptions.
In July 2023, ASIC began an investigation into possible violations of the Corporations Act, and ISG’s future became even more uncertain when the company entered voluntary administration on 10 September 2024.
The investigation into ISG’s affairs is still ongoing.
Prior to this news, ASIC announced the banning of an NSW director after company failures as well as the action taken against by the corporate regulator against 13 SMSF auditors.
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