Prime Value licence suspended over reporting failures

ASIC has suspended the Australian financial services licence (AFSL) of Prime Value Asset Management after the fund manager failure to meet its statutory audit and financial reporting obligations for two consecutive financial years.

The corporate regulator said Prime Value's licence has been suspended until 7 August 2026 after it failed to lodge its audited financial statements for the 2024 and 2025 financial years.

ASIC also identified previous breaches of the firm's financial resource requirements and failures to lodge compliance plan audit reports for some of its retail managed investment schemes. While those issues have been rectified, the regulator said the reporting failures warranted regulatory action.

Under the suspension, Prime Value is prohibited from issuing interests in its managed investment schemes to new investors. However, it may continue to provide financial services necessary for the day-to-day operation and management of its existing schemes, including the reinvestment of income distributions for current investors.

The firm must also continue to comply with its ongoing licence obligations throughout the suspension period.

Prime Value may seek a review of ASIC's decisions through the Administrative Review Tribunal.

Prime Value is the responsible entity for eight registered managed investment schemes, including the Prime Value Diversifies High Income Plus Fund, Primate Value opportunities Fund, Prime Value Equity Income Fund and Prime Value Growth Fund.

The Melbourne-based investment manager also acts as trustee for 53 unregistered managed investment schemes and operates a wholesale managed discretionary account service.