SMSFs hit as ASIC moves to wind up scheme
A small number of SMSFs were invested in a land banking scheme that ASIC has commenced proceedings in the Federal Court of Australia to wind up.
ASIC has commenced proceedings in the Federal Court of Australia to wind up a land banking scheme known as the VKK Investments Unit Trust – VKK scheme and the trustee and operator of the scheme, Gem Management Group Pty.
Early last week, ASIC said it understands that around 125 investors have invested a total of approximately $22 million into the VKK scheme.
Gem has been operating the VKK scheme since May 2010.
There were a small number of SMSF invested, an ASIC spokesperson told SMSF Adviser, but the corporate regulator does not believe it was specifically intended for or pitched to SMSF investors.
ASIC alleges that the VKK scheme constitutes a managed investment scheme which has not been registered, in contravention of the Corporations Act 2001 (Act).
ASIC also alleges that Gem, which does not hold an AFSL, has also breached the Act by operating an unregistered managed investment scheme. The regulator is seeking to appoint liquidators to both the VKK scheme and Gem.