ASIC has made interim stop orders preventing BT’s Advance Asset Management from offering or distributing three funds to retail investors because of non-compliant Target Market Determinations.
The flagged funds are the $1.7 billion Advance Balanced Multi-Blend Fund, the $1.4 billion Advance International Shares Multi-Blend Fund, and $1.1 billion Advance Property Securities Multi-Blend Fund.
The regulator said it considered the TMDs were broadly drafted and failed to define key concepts and used vague risk profiles that made identifying the appropriateness of the products impossible.
ASIC also considered that the distribution conditions outlined in the TMDs were inadequate and did not adequately specify the following:
- The information that distributors must report to Advance so that Advance can determine whether a review trigger has occurred;
- The period for reporting this information to Advance; and
- The review triggers for the TMDs.
ASIC expects Advance to consider the concerns raised about the TMDs and take immediate steps to ensure compliance.
Advance was served the interim orders on 14 March 2023. The orders are valid for 21 days unless revoked earlier.
Advance is the specialist asset management business within BT Financial Group.