Australian Securities and Investments Commission v Tasman Investment Management Ltd

In the case of Australian Securities and Investments Commission v Tasman Investment Management Ltd, the plaintiff, Australian Securities and Investments Commission (ASIC), sought to have a managed investment scheme wound up due to its failure to be registered. The defendant, Tasman Investment Management Ltd, acknowledged that the scheme should be wound up and proposed that it be sold off under the supervision of an accountant acting as its agent. The court was required to decide whether the court should allow the operator to sell the scheme's property and if an independent person should be appointed as receiver to wind up the scheme.

The court considered the legal framework governing managed investment schemes and the statutory requirements for their operation, including the need for registration. It examined the proposal by the operator to sell the scheme's property through an accountant and the lack of any other proposed functionary to administer or superintend the winding up of the scheme. The court also considered the potential for mismanagement and the need to protect investors' interests.

The court concluded that the operator's proposal was not satisfactory as it did not provide sufficient safeguards for the protection of investors' interests. The court held that an independent person should be appointed as receiver to wind up the scheme. The court emphasised the importance of ensuring that the winding up of the scheme is conducted in a transparent and orderly manner, with appropriate oversight to protect the interests of investors. The court ordered that an independent receiver be appointed to wind up the scheme.

In summary, the court ruled that the operator's proposal to sell the scheme's property through an accountant was not sufficient to protect investors' interests. The court appointed an independent receiver to wind up the scheme to ensure that it was conducted in a transparent and orderly manner. The court's decision highlights the importance of ensuring that managed investment schemes are properly registered and operated in accordance with the law to protect investors' interests.