Representatives of the action group LM Thailand Investor Group (LMTIG) met with the ambassador, Paul Robbilliard, on Wednesday to discuss the ongoing investigation into the failed fund house.
During the meeting, the group – who collectively lost about £8.5m – discussed the “mixed messages” they were given from Australia’s financial system, and the “inadequacies” of the ongoing investigations by the Australian Securities and Investments Commission (ASIC).
Infighting
The group also argued that there had been continual bickering between the fund liquidators and administrators, “none of which seemed to have any regard for the interest of investors”, it claimed.
In 2013, thousands of Australian and British expatriates living in Thailand – many of whom were already in retirement – were left destitute after LM Investment Management went into administration. Shortly after, the firm had its financial services licence suspended by the ASIC for two years.
Most of the 12,000 expats affected claim they were coaxed to invest in LMIM by unregulated financial advisers.
“Nothing wrong”
Five months before the firm went under, the company’s founder Peter Drake issued a statement insisting there was nothing wrong. According to LMTIG, Drake continues to have ongoing financial dealings, despite being declared bankrupt.
In September last year, specialist law firm Regulatory Legal Solicitors urged investors who had been sold LM funds to get in touch so it could help them seek redress.
Robbilliard agreed to take the group’s case to the Australian Government, including the ASIC, and will advise the group on the outcome of that representation.
New inquiry
Responding to a letter to the Australian Prime Minister in August last year, the acting assistant treasurer, Mathias Cormann, said: “I am sorry to hear of the difficulties you have experienced with your investments, and I sympathise with all investors in LM funds.
“I assure you that investors can have confidence that Australia has a strong and well-regulated financial sector which has been recognised as amongst the best in the world.”
However, Cormann also highlighted that the Government was going to launch an inquiry examining how Australia’s regulatory framework could be improved.
