Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

At the request of Senator Pratt, I move:

That the following matter be referred to the Economics References Committee for inquiry and report by 1 December 2021:

Sterling Income Trust, with particular reference to:

(a) the Australian Securities and Investments Commission's oversight of the Sterling Income Trust;

(b) the need for legislative and regulatory reform to prevent such losses in the future;

(c) access to justice and redress for victims of the Sterling Income Trust Collapse;

(d) the novelty of the products of the Sterling Income Trust;

(e) why the scheme collapsed and where the money went; and

(f) any related matters.

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

by leave—I make a short statement. ASIC is undertaking an ongoing investigation into the conduct of a number of entities and offices within the Sterling Group of companies. Matters relating to the Sterling Income Trust have been the subject of litigation and the government does not wish to prejudice any possible future proceedings. On 19 November 2020, the Federal Court in Western Australia found Theta Asset Management, the responsible entity for Sterling Income Trust, and its managing director, Mr Robert Marie, contravened the Corporations Act on multiple occasions. The court ordered Theta to pay a penalty of $2 million and ordered Mr Marie to pay a penalty of $100,000. The government notes the impact of the failure on investors' residential tenancies are matters most appropriately considered at the state level, given these matters come under state laws.

Question agreed to.