ASIC orders halt of advertisements for PPM Units in RES Investment Fund
The Australian Securities and Investments Commission (ASIC) has issued an interim stop order preventing advertisements containing certain misleading or deceptive statements about PPM Units, a class of interests in RES Investment Fund. The responsible entity of the Fund is Responsible Entity Services Limited (RES).
The order stops RES from advertising or publishing any statement regarding PPM Units that suggests an investor will acquire equity in Pleasure Point Mine Pty Ltd (PPMPL), a related entity of RES. The stop order is valid for 21 days unless revoked before then.
ASIC considers that statements that investors will acquire equity in PPMPL are misleading or deceptive because they may lead investors in PPM Units to believe that they will receive shares and/or a direct ownership interest in PPMPL. The statements are not consistent with the description of the PPM Units in product disclosure statements for the Fund and PPM Units.
The regulator notes that the sole underlying asset of the PPM Unit class in the Fund is a loan to PPMPL.
ASIC identified misleading or deceptive statements in an online advertisement for PPM Units during a recent surveillance that examined the marketing and disclosure for the Fund.
The watchdog may consider further regulatory action in relation to the Fund and RES.
ASIC has recently taken enforcement action against fund managers for misleading or false advertising, including action against the Mayfair 101 Group and La Trobe Financial Asset Management.