Mayfair 101 has labelled the appointment of receivers by trustee Vasco “premature and imprudent” and said that it is likely to result in “unfortunate and unnecessary destruction of value” for investors in its IPO Wealth Fund.
“Vasco Trustees Limited appointed receivers without the consultation of the investment manager, IPO Wealth Pty Ltd, and no attempts were made to understand the steps that are currently being undertaken by the Mayfair 101 Group to protect its investors and portfolio companies,” Mayfair said in a release. “Despite contrary media reports, no attempts were made by Vasco to contact the group in the week leading up to the appointment of receivers.”
Mayfair also claims that an email to Vasco’s managing director saying that it was working on a restructure to improve liquidity to investors went unanswered. However, IPO Wealth Holdings is working with receivers “as required”.
Mayfair recently found itself in the crosshairs of ASIC after the regulator claimed its advertising was misleading.
“The recent overreaching actions of ASIC with respect to the advertising of Mayfair Platinum’s two debenture products [have] also exacerbated the already challenging circumstances, and [have] contributed to Vasco’s decision to appoint receivers which is now likely to result in the potential loss of value for the fund’s investors,” Mayfair said. “The group has been working with top-tier restructuring experts and its panel of advisers to assist with the preservation of value for the benefit of the group’s investors.
“It is therefore immensely disappointing that the IPO Wealth Fund’s trustee has made this decision and compounded the already significant detrimental impact of ASIC’s actions on the group and its many loyal investors.”
Mayfair has said it will “vigorously defend” the proceedings brought against it by ASIC.
Everybody should have seen this one coming a mile off. In my entire career I can’t remember an ‘investment’ that was so brazenly designed to fleece the unwary from their funds. It’s beyond me why ASIC let it get to this point, perhaps they should spend a little less time of destroying the careers of financial advisers and more time on stopping the Mayfair’s of the world? Just a thought.
Surely a name like Mayfair Platinum is destined for super strong returns?
Better than Park Lane Gold I guess?
Nobody should be surprised by this. Another Ponzi scheme goes under with the owner lamenting the injustices whilst real people lose their life savings. Let’s hope ASIC has grown a pair since the Royal Commission and throw the book at him.
Mayfair is one of the many Frankensteins created by our dysfunctional regulatory environment.
With professional advice being so swamped by regulatory red tape and costs, more and more consumers are being drawn to dodgy direct marketed products like Mayfair. There’ll be plenty more like Mayfair in the pipeline. Dodgy product promoters know that hordes of consumers will be orphaned from their professional advisers in the next few years, and will be ripe for exploitation. ASIC will be playing an endless game of whack-a-mole.
I’m so glad that I warned people about investing in these product(s).
Misleading advertising, masqueerading as a genuine term deposit alernative.
As Darryn Hinch used to say. “Shame, Shame, Shame”.
smells like another FP industry corpse to me…
Mayfair leadership reeks of incompetence and immaturity. Now in dispute with receivers and ASIC. Good luck with that. I think we all know where this will end up.