AIOFP hits Treasury with $13.7b list of 92 failed or frozen MISs
The Association of Independently Owned Financial Professionals (AIOFP) has produced a list of 92 failed or frozen managed investment schemes (MISs), some of them owned by Australia’s largest financial services companies, to underpin its argument that product manufacturers must help fund the Compensation Scheme of Last Resort (CSLR).
The list of 92 frozen or failed MIS schemes accounts for $13.7 billion in funds under management and has been provided to the Treasury as part of the Government’s CSLR process.
The major financial services houses named on the AIOFP list which covers the period between January 2006 and August 2022, include Challenger, AMP Limited, MLC Limited, OnePath, UBS, Macquarie and Blackrock including schemes which became notorious such as Trilogy, Sterling and a raft of agricultural investment schemes.
In doing so, the AIOFP is arguing that the CSLR should be implemented in line with the model recommended by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services industry which included coverage of product manufacturers.
“The recent political backflips by both major parties over implementing CSLR in its original Hayne recommended form, raises serious concerns that anti – consumer vested interests are trying to change the operational format of CSLR to suit their own position, rather than that of the consumer,” the submission said.
“Once the stakeholder structure of the Financial Services industry is examined there appears to be only one participant who will benefit directly from the three critical aspects being touted for amendment. This stakeholder are the product manufacturers which includes the Banks and Financial Institutions [the Banks].”
“The foreshadowed attempts by those interest groups to eliminate the 1/1/2008 retrospective date and replace it with a date of legislation, and further to seek to exclude Managed Investment Schemes [MIS] in the catchment zone, will disadvantage those consumers who fall outside that retrospective date, which in turn, will benefit the Banks,” the submission said.
The AIOFP submission said the organisation believed “all MIS should be included in the catchment, compensation capped at current AFCA levels and backdated to what both major political parties originally agreed to – 1/1/2008. Advisers should be funding advice failure and Banks funding product failure”.
“If CSLR is amended to a capped, non – retrospective dated structure and NOT incorporating MIS schemes, it will usher in a pitiful, and an almost functionless and futile piece of legislation which will not serve consumers’ best interests,” it said.
|
List of Failed and Frozen Financial Products |
From 1/01/2009 No agribusiness |
||
|
from January 2006 to August 2022 |
|||
|
Managed Fund/Investment |
Value ($m) rounded to nearest million |
Failed/Frozen Date |
|
|
1 |
Cromwell Property Fund IDPS Option |
472.00 |
14/01/2009 |
|
2 |
Storm Financial |
3,000.00 |
15/01/2009 |
|
3 |
UBS Global Infrastructure Fund |
0.18 |
2/03/2009 |
|
4 |
AMP Capital Core Property Fund – Class A |
19.00 |
9/03/2009 |
|
5 |
UBS Credit Enhanced Cash Fund |
18.47 |
19/03/2009 |
|
7 |
SSgA Aust Listed Property Index Trust |
7.90 |
30/04/2009 |
|
8 |
SSgA Global Fixed Income Trust |
1.10 |
30/04/2009 |
|
10 |
Perpetual Fidelity America Fund |
57.18 |
22/05/2009 |
|
11 |
Invesco Wholesale Australian Fixed Interest Fund |
1.81 |
27/05/2009 |
|
12 |
Legg Mason Wholesale Defensive Trust |
45.89 |
15/06/2009 |
|
13 |
MMC Small Companies Fund |
53.88 |
30/06/2009 |
|
14 |
Schroder Geared Global Active Value Fund (Hedged) |
128.56 |
31/07/2009 |
|
15 |
Macquarie Diversified Private Equity – 2002 |
6.64 |
29/09/2009 |
|
16 |
AMP Capital Investors Enhanced Index International Share Fund |
4.78 |
30/09/2009 |
|
17 |
Astarra Balanced Fund |
72.19 |
5/11/2009 |
|
18 |
Astarra Conservative Fund |
31.04 |
5/11/2009 |
|
19 |
Astarra Growth Fund |
12.12 |
5/11/2009 |
|
20 |
Astarra Strategic Fund |
118.00 |
5/11/2009 |
|
21 |
Australian Unity Mortgage Income Trust |
625.42 |
12/11/2009 |
|
22 |
Australian Unity Wholesale Mortgage Income Trust |
925.58 |
12/11/2009 |
|
23 |
BT Wholesale Australian Small Companies Fund |
508.62 |
13/11/2009 |
|
24 |
Colonial First State PST – Australian Share Option |
7.03 |
16/11/2009 |
|
25 |
Colonial First State PST – Property Securities Option |
30.01 |
16/11/2009 |
|
26 |
United Funds Management Australian Shares PST |
5.26 |
16/11/2009 |
|
27 |
United Funds Management Capital Growth PST |
8.14 |
16/11/2009 |
|
28 |
United Funds Management International Shares PST |
30.23 |
16/11/2009 |
|
29 |
Macquarie Life Master Aust Enhanced Equities |
45.78 |
25/11/2009 |
|
30 |
Macquarie Life Master Balanced Investment Fund |
65.42 |
25/11/2009 |
|
31 |
Macquarie Life Master Capital Stable Fund |
58.77 |
25/11/2009 |
|
32 |
Macquarie Life Master Cash Fund |
86.87 |
25/11/2009 |
|
33 |
Macquarie Life Master Fixed Interest Fund |
131.79 |
25/11/2009 |
|
34 |
Macquarie Life Master Property Securities Fund |
106.49 |
25/11/2009 |
|
35 |
Lazard Global Equity (ex Australia) Fund |
1.02 |
30/11/2009 |
Page 1 of 3
|
List of Failed and Frozen Financial Products |
From 1/01/2009 No agribusiness |
||
|
from January 2006 to August 2022 |
|||
|
Managed Fund/Investment |
Value ($m) rounded to nearest million |
Failed/Frozen Date |
|
|
36 |
AMP Future Directions Total Returns Fund |
0.38 |
2/12/2009 |
|
37 |
Aberdeen Cash Plus Fund |
45.58 |
13/01/2010 |
|
38 |
Legg Mason Australian Credit Trust |
7.12 |
27/01/2010 |
|
39 |
MLC Australian Share Fund (MT) |
208.43 |
2/02/2010 |
|
40 |
MLC Balanced Fund (Moderate) |
731.29 |
2/02/2010 |
|
41 |
MLC Capital Stable Fund (Conservative) |
298.44 |
2/02/2010 |
|
42 |
MLC Capital Stable Fund (MT) |
1.87 |
2/02/2010 |
|
43 |
MLC Corporate Global Share Fund |
0.84 |
2/02/2010 |
|
44 |
MLC Growth Fund (Growth) |
757.92 |
2/02/2010 |
|
45 |
MLC Growth Fund (MT) |
13.56 |
2/02/2010 |
|
46 |
MLC Property Securities Fund (MT) |
142.28 |
2/02/2010 |
|
47 |
BT Wholesale Technology Fund |
2.00 |
22/02/2010 |
|
48 |
OnePath (ING) Corporate Super Balanced Fund |
415.28 |
10/03/2010 |
|
49 |
OnePath (ING) Wholesale Super Australian Shares |
6.47 |
10/03/2010 |
|
50 |
OnePath (ING) Wholesale Super Capital Stable |
540.37 |
10/03/2010 |
|
51 |
OnePath (ING) Wholesale Super Managed Growth |
10.71 |
10/03/2010 |
|
52 |
UBS Protected Cash Fund |
0.53 |
14/04/2010 |
|
53 |
DWS Strategic Value Fund (Enhanced Liquidity) |
0.10 |
20/04/2010 |
|
54 |
Goldman Sachs JB Were Emerging Leaders Wholesale Fund |
155.80 |
23/04/2010 |
|
55 |
Goldman Sachs JB Were Global Health & Biotechnology WS Fund |
8.60 |
23/04/2010 |
|
56 |
Macquarie Global Private Equities Securities Fund |
4.54 |
27/04/2010 |
|
58 |
UBS Australian Equity Income Fund |
4.67 |
25/05/2010 |
|
59 |
Goldman Sachs JBWere Property Securities Wholesale Fund |
27.20 |
2/06/2010 |
|
60 |
AMP Capital Investors Small Companies Fund Class A Units |
31.49 |
30/07/2010 |
|
61 |
AMP Capital Australian Small Companies Fund – Wholesale |
8.71 |
20/08/2010 |
|
62 |
Ord Minnett Global Dynamic Fund |
14.10 |
30/08/2010 |
|
63 |
BNP Paribas Asset Management Emerging Markets Equity Fund |
2.97 |
1/09/2010 |
|
64 |
Blackrock Australian Quant Strategies Fund (Class D) Units |
210.50 |
18/10/2010 |
|
65 |
Challenger Wholesale Global Property Securities Fund |
21.77 |
18/10/2010 |
|
66 |
Huon Australian Share Fund |
9.93 |
10/11/2010 |
|
67 |
Blackrock Scientific Australian Equity PST |
611.91 |
15/12/2010 |
|
68 |
Equititrust |
194.00 |
1/11/2011 |
|
69 |
Trilogy Healthcare REIT |
6.70 |
30/06/2012 |
Page 2 of 3
|
List of Failed and Frozen Financial Products |
From 1/01/2009 No agribusiness |
||
|
from January 2006 to August 2022 |
|||
|
Managed Fund/Investment |
Value ($m) rounded to nearest million |
Failed/Frozen Date |
|
|
70 |
Provident Capital |
130.00 |
24/10/2012 |
|
71 |
Banksia Financial Services |
650.00 |
25/10/2012 |
|
72 |
Opus Capital Growth Fund #1 |
32.00 |
18/02/2013 |
|
73 |
Wickham Securities |
27.00 |
1/03/2013 |
|
74 |
LM Australian Income Fund |
27.86 |
20/03/2013 |
|
75 |
LM Australian Structured Products Fund |
8.22 |
20/03/2013 |
|
76 |
LM Cash Performance Fund |
0.73 |
20/03/2013 |
|
77 |
LM Currency Protected Australian Income Fund |
76.86 |
20/03/2013 |
|
78 |
LM Managed Performance Fund |
376.74 |
20/03/2013 |
|
79 |
Velocity Fund |
30.00 |
22/05/2013 |
|
80 |
Opus Magnum Fund |
34.00 |
27/06/2013 |
|
81 |
Opus Development Fund #1 |
0.50 |
30/06/2013 |
|
82 |
Van Eyk Blueprint Managed Funds |
400.00 |
4/09/2014 |
|
83 |
Aurora Fortitude Absolute Return Fund |
74.20 |
25/02/2016 |
|
84 |
Hermitage Bendigo (Acacia Bank/Bilkurra) & Foscari land banking schemes |
24.00 |
18/04/2016 |
|
85 |
Courtenay House Capital Investment Fund |
196.00 |
1/05/2017 |
|
86 |
Halifax Investments (share broker) |
200.00 |
1/11/2018 |
|
87 |
Investport Income Opportunity Fund (Beacon) |
20.00 |
18/03/2019 |
|
88 |
Sterling First Group/ Sterling New Life |
18.50 |
1/06/2019 |
|
89 |
Blockchain Global (BGL) crypto-currency platform |
21.00 |
3/11/2021 |
|
90 |
A Team Property Group |
23.50 |
1/06/2022 |
|
91 |
Remi Capital Group |
124.00 |
6/06/2022 |
|
92 |
Aboriginal Community Benefits Fund |
66.00 |
4/08/2022 |
|
13,744.34 |
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Bravo AIOFP. I can think of some others too but well done.
The muppets in Canberra keep screwing up. Makes you wonder if QoA review will make any difference.
The same pressure Is there by the banks, instos and union funds to allow their backpacker and call centre staff to give advice. The writing is on the wall.
This is what the AFA/FPA mob should be doing. Highlighting failed financial products that are not the result of any adviser activity.
Don’t think I will hold my breath though – it would appear, and I’m happy to see the evidence to the contrary, that our so called “professional bodies” are still attached monetarily speaking to product manufacturers.
While I applaud what they’re trying to do, they’ve done themselves a disservice to have a bigger headline number by including investments that didn’t fail, but were rebranded or renamed.
Just using the failed, collapsed and frozen would have been sufficient.