The Australian Securities and Investments Commission (ASIC) is seeking orders from the Federal Court to restrain Royce Capital Investments Pty Ltd, Royce (Aust) Real Estate Pty Ltd (RARE), Louie Kortesis and Paul Chiodo from advertising, promoting or accepting money in Australia for Royce Global Investments LP (registered in the Cayman Islands), Royce Global Real Estate LP (registered in the Cayman Islands) and Royce Private Investments Fund LP (registered in Delaware, USA).

ASIC’s proposed orders would also restrain Royce Capital, RARE, Mr Kortesis and Mr Chiodo from advertising, promoting or accepting money for financial products generally in Australia.

ASIC alleges that in August 2025, Royce Capital raised $1.536 million from five Australian SMSF investors, purportedly for investment in one or more of the above offshore funds.

The regulator alleges that:

• Royce Capital provided financial services without holding an Australian financial services licence;
• Mr Kortesis and Mr Chiodo were involved in Royce Capital’s alleged unlicensed conduct, and that
• Royce Capital and/or RARE made misleading or deceptive representations in brochures provided to some investors, including to the effect that they would receive a guaranteed or fixed return of 13% per annum.

Mr Chiodo is also the subject of Federal Court proceedings in relation to the Shield Master Fund.