Funds Update – 16 February 2024

In this Funds Update for 16 February 2024:

ASIC uses PDS stop order powers

On 7 February 2024, ASIC announced that it had made interim stop orders on four product disclosure statements (PDSs) for classes of units of a registered managed fund (Fund), which is a timely reminder that ASIC is still ready, willing and able to issue PDS stop orders where it is concerned that a PDS may be defective and is not solely focussed on using its DDO stop order powers.

ASIC was concerned that the PDSs may have:

• contained misleading statements regarding the Fund manager's role in unregistered schemes the Fund had invested in and the level of diversification of the assets of the Fund;
• not adequately disclosed:
  1. the nature, quantum and risks associated with the Fund's investments in unregistered funds related to the fund manager;