Court liquidates Endeavour and Linchpin after ASIC case

This for multiple violations of the Corporations Act

Court liquidates Endeavour and Linchpin after ASIC case


By Mina Martin

The Federal Court of Australia has ruled against Endeavour Securities (Australia) and Linchpin Capital Group, finding them in violation of several provisions of the Corporations Act.

The court’s decision mandates the liquidation of both financial firms and their associated investment funds, both named the Investport Income Opportunity Fund.

Breach of trust and legal obligations

Evidence presented by ASIC highlighted serious mismanagement by both entities.

Endeavour, as the responsible entity, did not:

  • act in the best interests of Investport Income Opportunity Fund members
  • ensure the provision of financial services was both efficient and fair
  • exercise the necessary care and skill expected of a responsible entity
  • obtain member approval for related party transactions
  • clearly communicate to investors the nature and extent of the related party transactions undertaken

The violations involving Linchpin include:

  • operating an unlawful managed investment scheme
  • operating without an Australian Financial Services licence
  • engaging in activities likely to mislead or deceive

Judicial findings and orders

Justice Sarah Derrington, presiding over the case, pointed out the extensive non-compliance by both Endeavour and Linchpin with the Corporations Act.

“Given the length and breadth of the non-compliances with the act, there is more than sufficient justification for the winding up of both companies,” Derrington said.

Deloitte’s Jason Tracy and David Orr have been appointed as liquidators for both Endeavour and Linchpin, along with the Investport Income Opportunity Funds. Stakeholders are advised to direct their inquiries to Deloitte for further information.

The legal proceedings against Endeavour and Linchpin commenced in August 2018 when ASIC obtained interim orders to appoint receivers and prevent the firms from mismanaging investor funds and assets, ASIC said.

Last week, in another Federal Court case initiated by ASIC, Provide Capital’s appeal was dismissed, affirming its obligation to comply with the regulator’s document production request.

Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.

Keep up with the latest news and events

Join our mailing list, it’s free!