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Wellington Capital PIF/Octaviar (MFS) PIF

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marcom said:
ASIC battles high-level departures

AFR 15 Nov 2010 12:01:41 PRINT EDITION: 15 Nov 2010
http://www.afr.com/p/national/asic_battles_high_level_departures_c17IPQqBeOnMtvhcpwWnSI

"Two more senior executives are walking out on the Australian Securities and Investments Commission as the regulator continues to battle high levels departures and criticism over its enforcement record."

Rats leaving the sinking ship????
Click to expand...
Not surprising the 'rats' are scurrying Marcom with headlines such as ::'ASIC chair grilled over Storm ' http://www.investordaily.com.au/10522.htm::


I am sure there will be more 'grilling' to come' for ASIC as it becomes clearer and clearer that when it comes to anything remotely complex which requires dedication and committment to unravel, ASIC has failed big time and continues to rely on results achieved from unrelated sources (generally at someone elses expense) before they decide to act, if at all. Get off your lazy butts ASIC and do the job we pay you for! It appears on the rare occassion when someone with clout who actually has the guts to raise questions and point out your failings, the only thing working efficiently in your dept is the exit doors!!
Seamisty
 
seamisty said:
Not surprising the 'rats' are scurrying Marcom with headlines such as ::'ASIC chair grilled over Storm ' http://www.investordaily.com.au/10522.htm::....
Click to expand...

Or it could be that the more diligent public servants are leaving. Their attempts to do the right thing being squashed. They don't want to have anything to do with ASIC any more. They finally woke up to see that they too were being used by corporate Australia to get through our caveat emptor. That ASIC status as a Commission is bogus. That it's just a political tool. With politicians, as always, stuggling against the might of an organised and coordinated corporate Australia and their new best friends: the legal fraternity.

The real shift in power has come from the legal fraternity shifting further away from altruism towards $ billed in 6 minute chunks.

And as Abbott proposed, a remedial action is to elected judges. Sounds ok to me. Our legal system is more like the US than the UK now anyway.
 
Hello Duped,
Your comments promt me to post some info that I found of interest re insolvency issues being examined and tweeked by professionals here in AU.

This seminar link might interest:
"Corporations Law Nation-wide Seminar 2 April 2008"

http://www.fedcourt.gov.au/aboutct/nationwideseminar_paper1.html
mentions UK and US comparisons and MFS mentioned under the heading,
"2. The position of Directors of Larger Corporations"

How politics has interacted and continues to tweek things ie Sons of Gwalia or the "statutory business judgement rule" a US concept, are found here:

http://mfsscl.treasurer.gov.au/Disp...0/004.htm&pageID=003&min=ceba&Year=&DocType=0

from other links there are recent seminars involving professionals involved, focusing on these issues...which impact on the matter of insolvency...trading...responsibilities etc. and that led me to start looking at an overall picture.

An article re arbitration changes: on a great site...
http://www.thenewlawyer.com.au/article/New-arbitration-laws-a-coup-for-Australia-A-G/519042.aspx
made me consider why AU might be aligning our practice with international practice and trecking towards this method of dispute resolution...an ASIC characteristic it appears to me. What do you think?

I think it is frustrating and complicated and it takes time for all the powers involved to have their influence on outcomes...you see this as a "struggle against the might of an organised and coordinated corporate Australia"....etc Duped..
I also see a sort of tug of war from many directions and even from overseas and unless you keep holding your line ...you wont influence the outcome.
I have learnt a lot and still dont understand a lot more.

Do you think our super is in safe hands? and will our courts be able to make judgements based on laws put in place by governments or will we have to bend over backwards to please big money?
How well can we spin this?
Heres a politians quote that makes this point well ,imo re Sons of Gwalia case.
"'Any direct benefits to aggrieved shareholders arising from non-subordination are outweighed by the negative impacts on shareholders generally as a result of restrictions on access to, and increases in, the cost of debt financing for companies,'...
and lets presume that government borrows heavily too.

I am not impressed and disagree with such a short sighted stance.
 
I am also hoping that our Big 4 Banks can hold up interest rates high enough to attract overseas deposits and then replace the financers mentioned in this quote...
" "'Any direct benefits to aggrieved shareholders arising from non-subordination are outweighed by the negative impacts on shareholders generally as a result of restrictions on access to, and increases in, the cost of debt financing for companies,'"

Is that how it works or could work?
I think AU would benefit longterm and Australian mortgage holders can accommodate it.
The strength of our economy and banks should be used right now and I think offering high interest rates when everyone overseas cant is a good thing if our Big 4 then invest in Australia.
 
LTD said:
....an ASIC characteristic it appears to me. What do you think?
Click to expand...

I hope not. Arbitration is supposed to mean out of court settlements and unpublished decisions. This seems inconsistent with ASIC's self proclaimed job of providing a deterent affect (presumably by initiating legal action to set examples).

LTD said:
Do you think our super is in safe hands?
Click to expand...
Depends how old you are. The first who cash out should be fine. As for the rest of us? Who knows? The system doesn't seem to have an adequate wind down plan. (Ha ha. Like PIF eh!) With ageing populations in Europe, US and Japan - who's going to buy all those 'assets' when all these gargantuan schemes start to sell assets to pay for the entitlements. It'll be biggest buyers market in history. And that doesn't bode well for asset prices. Or am I missing something.

I know I'm expecting to have to work til I drop. And I'm expecting this will be because of inter generational tensions. Labour will be king. Or democracy will look completely different. See if you can watch Eric Kaufman's presentation at this year's Festival of Dangerous Ideas. It might be on ABC's iView.

Either way they are very sticky hands. The Cooper review didn't like the size of the cut the money men are skimming.
 
If you are somebody with influence, could you make contact with Carneys and ask them for an update as to the progress of our Class Action?

It must be about 18 months since we have heard anything from them. I know we must be patient, but to be given orderly updates would not be asking for too much.

Many thanks,

Michael
 
http://www.smh.com.au/business/some-safety-nets-look-like-hammocks-20101117-17xlr.html

UNSUITABLE

The minutes from last month's creditors meeting of the former MFS-managed investment vehicle MFS Alternative Asset Ltd show the valiant fight made by the Gold Coast group's former chief financial officer, David Anderson, to ward off the appointment of a certain liquidator.

Anderson, who has already got to know the team from Bentleys Corporate Recovery reasonably well from his cameo appearances at the public examination into the collapse of MFS, expressed his concerns about the Brisbane corporate undertaker being handed the reins of AAL.

Anderson noted that 11 of the 13 former MFS companies and subsidiaries to which Bentleys was appointed were a result of his ''positive assistance'' when he was acting as a consultant. But he told the McGrathNicol-hosted meeting that Bentleys was not suited as the liquidator of AAL.

''In his opinion, Bentleys are struggling to deal with the current issues of the MFS group efficiently, including the payment of priority employee claims,'' note the minutes from the meeting.

''The AAL liquidation, once combined with the larger group, would result in the liquidation not being prioritised appropriately,'' Anderson told the meeting.

Anderson, apart from being a creditor, was a director and 33 per cent shareholder of AAL.

OTHER CREDITORS

Anderson tipped AAL into administration in August based on a $2200 debt owed to his personal company. A tussle ensued: Bentleys objected to Anderson's appointment of KordaMentha as the administrator (Bentleys was winding up a MFS subsidiary owed $64.6 million by AAL).

Anderson relented, nominated four possible administrators, and rolled a dice to pick the replacement. The number ''four'' came up and McGrathNicol became administrator.

Anderson, whose company Business Puzzle Solutions Pty Ltd was paid about $1 million in consulting fees from MFS's former liquidator, Deloitte (who was replaced by Bentleys last year), argued: ''Bentleys are the liquidators of a creditor of AAL, which puts them in direct conflict with other creditors of AAL as to the calculation and admission of claims.''

Aside from Anderson and his $2200, the only other listed creditor is the Australian Securities & Investments Commission, which is owed $1556. These ''other creditors'' are owed 0.006 per cent of what the Bentley's liquidated MFS is owed.

AAL's assets include $5.1 million of cash in a bank account, a 40 per cent stake in Vantage Asset Management, and a 7 per cent stake in the recently listed Aurora Funds Management.

At the original creditors meeting, Anderson said a conflict of interest could arise over Bentley's appointment of liquidator, given ''the possible forgiveness of the now $64 million debt owing to Octaviar Castle Pty Ltd [aka MFS]'' could be compromised. Had the loan been forgiven by MFS, AAL would now be sitting on $7 million of net assets. That could have translated well for Anderson, who bought a 33 per cent stake for $1
 
atlas1950 said:
If you are somebody with influence, could you make contact with Carneys and ask them for an update as to the progress of our Class Action?

It must be about 18 months since we have heard anything from them. I know we must be patient, but to be given orderly updates would not be asking for too much.

Many thanks,

Michael
Click to expand...
Hi Michael and all. I also feel we are long overdue an update re the Class Action so contacted John Walker IMF (executive director) and received a prompt response as follows ::::
"I expect to be able to provide you with a substantive update within two weeks or so. Until then, we are simply waiting on the reserved judgment"::


Cheers, Seamisty
 
Hi Seamisty,

I knew I could count on you. I just thought it's been such a long time, we were due to hear some news (good or bad) from somebody who is involved in the class action. We are all in the same boat and we all need to be together.

Thanks again to everyone for all there research and input into this wonderful Forum.

Michael
 
BREAKING NEWS::


Premium Income Fund
NSX release 18 November 2010
Wellington Capital and Armstrong Registry – Client Services
Activation of disaster recovery plans
Wellington Capital Limited, the responsible entity for Premium Income Fund,
advises that there was a catastrophic event caused by an electrical fault in its
Brisbane premises last night. Wellington Capital’s disaster recovery plan has
been activated.
None of the assets of Premium Income Fund are affected.
Wellington Capital expects it will be unable to respond to telephone or email
enquiries from investors for 48 hours.
Armstrong Registry Services, the registry provider to Premium Income Fund is
located in the same building as Wellington Capital. Similarly, Armstrong Registry
Services’ disaster recover plan has been activated. Armstrong Registry Services
also expects it will be unable to attend to registry matters for 48 hours.
Further announcements will be made in due course.
Wellington Capital apologises for any inconvenience.



http://www.nsxa.com.au/ftp/news/021723475.PDF
 
JohnH said:
Glad they told us of the catastrophic event!!

.................. puzzled why it would be "price sensitive"!!!
Click to expand...
Prediction JohnH, the next PIF catastrophic event is yet to be announced but will be something like this: 'Due to the unforeseen 'catastrophic event' which occured in the offices of Wellington Capital on the 18th Nov 2010 it is now unlikely that PIF investors will see any further payment as promised this year from Wollongong or other PIF proceeds until such times as WC staff have had time to conduct an orderly examination of documents to determine the extent of PIF related data damage. Wellington Capital will continue to monitor the situation and keep PIF investors fully informed of the situation:::

I wonder what caused the 'electrical problem'? The shredder working overtime or the 'hotline' overheating perhaps. Great to hear that PIF assets are safe! Of course they are safe (as relocated churches?), anything of value has already been FIRESALED and the majority of what remains only does so because no one else wants it or WC has another agenda for it. Wonder if the media will pick up on this, so far nothing in the news to substantiate a 'catastrophic event' in Queen St last night!

Seamisty
 
We must press for much more information about this so-called catastrophic event - its causes and its effects, as well as being given information about any fire services reports.
 
You could well be right Seamisty, I got this from the Insurance Council of Australia's site!

What are catastrophic events?
Catastrophe events are large natural or man-made disasters that cause a significant number of insurance claims in a region. The eight largest catastrophe events in Australia, in insurance terms are (in 2007 adjusted dollar amounts):

No 1
28/12/89
Newcastle Earthquake
$4,300,000,000

No 2
24/12/1974
Cyclone Tracey - Darwin
$3,600,000,000

No 3
14/4/1999
Sydney Hailstorm
$3,300,000000

No 4
25/1/1974
Brisbane Floods
$2,100,000,000



No 5
18/1/1985
Brisbane Hailstorm
$1,700,000,000



No 6
9/6/2007
Newcastle Storms
$1,500,000,000



No 7
16/2/1983
Victorian Bushfires
$1,300,000,000



No 8
7/2/2009
Victorian Bushfires
$1,009,000,000

Catastrophe events involving large numbers of claims, or complex issues, are coordinated through a general insurance industry taskforce that is established for each event and closed when the insured community recovery is completed.

Edited and emphasised by JH - better make that JohnH ;)
 
From the SMH Scott Rochfort Business Day
November 19, 2010

http://www.smh.com.au/business/winwin-follows-lossloss-for-gore-20101118-17z9u.html

CATASTROPHE

Disaster has befallen the manager of the MFS-founded Premium Income Fund, which announced yesterday that its ''disaster recovery plan has been activated''.

The Jenny Hutson-headed Wellington Capital yesterday announced ''there was a catastrophic event caused by an electrical fault in its Brisbane premises''.
 

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