ASIC reviews investment company fall
The corporate watchdog is reviewing LM Investment Management's financial services licence following the company's collapse into administration.
Headed by high profile Gold Coast businessman Peter Drake, the company is responsible for managing at least $750 million on behalf of thousands of investors. Its investments include a $240 million loan to Maddison Estate, a housing development in the Gold Coast hinterland associated with Mr Drake.
The company holds an Australian Financial Services Licence allowing it to run managed investment schemes.
"We have not cancelled LM Investment Management's AFSL," an Australian Securities and Investments Commission spokesman said. "We are reviewing the operation of the AFSL in light of the appointment of the voluntary administrator."