ASIC has commenced civil proceedings in the Federal Court of Australia against Finchley Central Funds Management Limited (Finchley).

ASIC is seeking orders from the Court to have Finchley wound up and a liquidator appointed to the company.

Finchley is the responsible entity of a registered managed investment scheme known as Finchley Development Capital Funds (FDCF). Within FDCF there are two active trusts, which have raised funds from retail investors:

• FDCF No. 2: ‘The Gilead Trust’, which presently has more than 600 members who have together invested in excess of $25 million, which has been on-lent as mezzanine finance to the developer of the Gilead Retirement Resort in New South Wales; and
• FDCF No. 3: ‘The Riverside Trust’, which presently has more than 300 members who have together invested in excess of $15 million, which has been on-lent as mezzanine finance to the developer of the Riverside Pier Hotel in Western Australia.

The full announcement is available online at ASIC.