ASIC suspends fundraising by ACR

The Australian Securities and Investments Commission placed an interim stop order on development financier Australian Capital Reserve. Australian Capital Reserve was one of several financiers promoting high-yield debentures and subject to increased scrutiny by ASIC over the details published in prospectuses. ASIC placed an interim stop order on ACR on Friday, following lodgement of accounts by Castle Investment (which manages ACR) four days earlier. Australian Capital Reserve has since removed all but its basic contact details from the company’s public website.
Two weekends ago the Australian newspaper questioned the valuations and merits of the prospectus issued by Australian Capital Reserve. The newspaper said that ACR reported “a pattern of sharp valuation increases, and, in some cases, sales to related parties” in connection with nine development projects financed by ACR.