Clime’s vehement denial of Shield, First Guardian claims

Clime Investment Management has issued a statement to the Australian Securities Exchange vehemently denying a newspaper report that it is under formal investigation by the Australian Securities and Investments Commission (ASIC).

The company says ASIC has confirmed in writing and has authorised Clime to state that a “formal investigation” was not and is not occurring

The Clime announcement went on to state: “To be clear and specific to our thousands of shareholders, clients, investors and followers, we want to place on the record the following response to the article’s innuendos:

• Clime funds and entities have never received funds or invested funds into the collapse First Guardian or Shield funds. The implication is false;
• Clime never paid marketing contributions or fees to induce Venture Egg advisors to allocate to Clime funds. The implication is false.

The ASX announcement said that following publication last Friday, Clime’s legal advisers contacted senior ASIC officers. ASIC Confirmed that there was no formal investigation into Clime Investment Management nor Clime Capital Limited.

“Indeed, ASIC has now further advised Clime that on 23 October, that it had merely made a telephone enquiry to a responsible entity of one Clime fund, regarding a disclosure document (and the associated target market determination).

“It is therefore extraordinary that The Australian reported as an absolute fact that a ‘formal investigation’ had commenced. When directly questioned by Clime’s representatives, the journalist maintained this position despite being advised it was incorrect. Clime’s lawyers have written to both ASIC and The Australian seeking correction of the record,” the ASX statement said.