Investors who applied for units in Basis Capital funds in June 2007 may soon recover their lost money, as a Supreme Court has ruled in favour of BT Financial Group's arguments that the money was never properly part of the funds.
The ruling by the Supreme Court of New South Wales means more than $23 million of June application money must be returned to investors.
BT Wrap head Chris Freeman said the ruling ended a year-long wait for Basis Yield and Basis Aust-Rim Opportunity Fund investors.
"Since July 2007, BT has sought - both directly and through the courts - to recover June application monies on behalf of investors and advisers in the Basis Capital funds," Freeman said.
"The ruling means Basis Capital must return over $23 million in June applicants' monies. The court also found in favour of June redeemers who will now be treated as creditors of the funds, with their proceeds calculated on the basis of the relevant fund's value as at June 30, 2007.
"While there is still some way to go before money is returned, BT and other industry representatives have been able to collectively represent investors' interests in a way that would be out of reach for many individual investors," he said.
BT agreed to act as the representative defendant for all investors who made applications in June 2007, as well as provide input into the case for other representative defendants.
