ASIC cancels AFS licence of Sovereign MF Ltd (in liquidation)
The Australian Securities and Investments Commission (ASIC) announced it has cancelled the Australian Financial Services (AFS) licence of Sovereign MF Ltd (in liquidation) ACN 104 964 555 (Sovereign). Sovereign is the responsible entity for The Sovereign Tarneit Land Fund and The Sovereign Aged Care Property Fund (the Schemes).
Sovereign was placed into liquidation on 24 May 2013 following a creditors' resolution on the basis that Sovereign was insolvent. The liquidators are currently engaged in the final stages of winding up the Schemes. The wind up has involved completing the residential development of the Westbourne Fields Estate in outer Melbourne and the realisation of all lots within the development.
The cancellation is subject to a specification under section 915H of the Corporations Act 2001 that the AFS licence continues in effect as though the cancellation had not happened for a period of 24 months to allow the liquidators to provide financial services that are reasonably necessary or incidental to the winding up of the Schemes. A period of 24 months is necessary to allow the liquidators to pay a number of bonds and retentions to statutory bodies which do not expire for another 18 months. The AFS licence was cancelled on 8 February 2017.