Authorised reps safe in LMIM administration

The $3.1 billion fund manager also holds Australian Financial Services Licence (AFSL) No. 220281 and has a number of authorised representatives, which LMIM says will not be adversely affected in the move to administration.

“There are four authorised representatives on the licence who write insurance business only and do not provide any investment product advice and do not therefore write business for any of the LM funds,” the spokesperson said.

“The voluntary administration takes over the powers under the AFSL and therefore there is no change for [our authorised representatives],” she added.

LMIM explained in a statement to investors on Tuesday that the company has been placed into administration to avoid the prospect of not being able to pay creditors, ifa sister title InvestorDaily has reported.

“Voluntary administration is a proactive approach by the board to officially bring in independent financial advice across the company and the funds,” the statement said.

“This step is believed to be in the best interests of protecting the funds and maximising returns for investors, and preventing LMIM company cash flow issues going forward.

“This is not liquidation or receivership, and neither LMIM nor any of the funds is in liquidation or receivership.”

The appointed administrator, FTI Consulting, said it will now “conduct a review of the business and of the LM funds and will update unit holders as a matter of priority”.