ASIC gets order to wind up Brisbane firm

The Federal Court of Australia in Melbourne has ordered financial services fund Global Merces Funds Management Ltd to be wound up on “just and equitable grounds”.

ASIC said the court had appointed Anthony Connelly and Michael Hill of McGrathNicol as the company’s joint and several liquidators.

Global Merces promoted itself as Australia’s “innovative provider” of responsible entity; trustee; fund administration; custody; distribution; marketing and online administration of software as a service.

After applying on January 24 to have Global Merces wound up, ASIC started proceedings to protect the public from the firm’s conduct of affairs and its insolvency. 

ASIC will continue to investigate the firm, which is the responsible entity of Global Merces Access Fund ARSN 604 201 952, Global Merces Equities Fund ARSN 604 220 662 and Covesta ARSN 625 625 803, collectively referred to as “the schemes”.

A voluntary administrator was appointed to Global Merces on January 13.

On January 21, ASIC suspended Global Merces’ Australian financial service (AFS) licence for six months. Global Merces has held AFS licence no 460883 since February 26, 2015.

Although ASIC has suspended the licence, it has used its powers under s915H of the Corporations Act to enable the administrators to conduct certain necessary activities under the licence during the administration, ie:

  • transferring the schemes to a new responsible entity;
  • investigating or the preserving of the assets and affairs of the schemes; and
  • winding up the schemes.