The Australian Securities and Investments Commission (ASIC) has made an interim stop order on Storehouse Residential Trust, a registered managed fund promoted by K2 Asset Management Ltd, due to deficiencies in the target market determination (TMD).
The interim order stops K2 from issuing interests in, giving a product disclosure statement (PDS) for, or providing financial product advice to retail clients recommending an investment in the Fund. ASIC made the interim order to protect consumers and retail investors from acquiring products that may not be suitable for their financial objectives, situation or needs.
ASIC considered that the target market in the Fund’s TMD was defined too broadly, did not properly consider the risks and features of the Fund and information within the TMD was inconsistent.
ASIC’s concerns included:
