ASIC probes Regal Funds Management

Regal Funds Management has confirmed an ASIC investigation into the asset manager is underway.

In a statement, a Regal spokesperson said the firm this week learnt the corporate regulator had begun to conduct a preliminary investigation into the asset manager by way of a search warrant, in relation to its trading in certain securities.

The confirmation comes just a day after trading was halted on the firm's Regal Investment Fund at the request of responsible entity Equity Trustees (EQT), after it was informed of the investigation earlier in the day.

"The trading halt is being requested on the basis that on 26 November 2019, EQT was informed by the fund's investment manager, Regal Funds Management Pty Ltd, that it is under investigation by the Australian Securities and Investments Commission for an undisclosed issue," EQT said in a statement to the ASX.

EQT said it expected the trading halt to be lifted once further information about the investigation was released, including the alleged parties and individuals involved. Regal added that as an active participant in Australian equity markets, regulatory scrutiny was expected "from time to time".

"Regal's responsibility to its clients is paramount and it takes its obligations to comply with all laws and regulations very seriously. Regal is cooperating fully with the investigation," a Regal spokesperson said.

"The existence of this investigation does not impact Regal's ability to provide asset management services to its clients."

Read more: EQTASICRegal Investment FundRegal Funds Management Pty LtdASXEquity Trustees
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