ASIC targets Fincorp over debentures

The Australian Securities and Investment Commission filed proceedings in the NSW Supreme Court against the Fincorp Investment over a prospectus that ASIC alleged contained misleading or deceptive statements and omitted required information. Fincorp issues high-yield debentures, which are used to fund investments in real estate development. ASIC first became concerned about Fincorp following a surveillance of high-yield debentures in late 2004. A stop order was then placed on the Fincorp prospectus in September 2004 preventing the offer from proceeding.