Stop orders issued by ASIC for two MPG Funds Management products have been revoked.
The orders related to Target Market Determinations for the MPG Bulky Goods Retail Trust and the MPG Essential Services Property Trust.
Both funds have issued amended TMDs and have re-commenced accepting applications for investment.
“MPG is proud of its strong compliance record and culture gained over the past twenty years and we take our compliance obligations seriously,” the firm said in a statement.
“We are supportive of ASIC’s reviews and have worked collaboratively with them to reword our Target Market Determinations to ensure that they are “best practice” and meet ASIC’s stricter interpretation of the newly introduced Treasury Law Amendment (Design and Distribution Obligations and Product Intervention Powers) Laws.
“We would like to reassure our loyal investors that we will continue to act in their best interests and seek to deliver on the performance parameters outlined in the relevant PDS.”
The stop orders were put in place by the regulator on 21 November due to concerns the previous TMDs included investors:
- With a tolerance for an undefined ‘medium risk’;
- Wanting stable and regular income distributions; and
- Needing liquidity or needing to make withdrawals during the investment term for the trusts.
Additionally, ASIC considered the TMDs did not adequately specify:
- The information that distributors must report for MPG to promptly identify the occurrence of a review trigger (or any event/circumstance) that would suggest that the TMDs were no longer appropriate;
- The period for reporting this information to MPG; and
- The review triggers for the TMDs.