ASIC has submitted a carefully worded one page document in response to questions from a parliamentary inquiry examining the collapse of Trio Capital (Trio).
Late last week, the corporate regulator lodged the responses to direct questions from Parliamentary Joint Committee (PJC) member and Senator Matt Thistlewaite.
Thistlewaite called for answers on four questions around ASIC's timeframe of investigating, when it formed the view there were risks to investors and when it publicly declared the start of its investigation into Trio.
Questions also focused on the involvement financial advisers and accountants had in advising investors to establish self-managed superannuation funds (SMSFs) and invest in Trio funds.
In its response, ASIC said it began formal investigations into Trio on 2 October 2009.
ASIC said it received a "credible complaint" concerning Trio and one of its funds, the Astarra Strategic Fund (ASF) on 21 September 2009, which promoted it to "make inquiries" about the fund.
Despite beginning its investigations into Trio on 2 October 2009, ASIC waited until 14 October to make public comment on its investigation so not to prejudice the case.
"On 14 October 2009 ASIC obtained an ex parte order from the Supreme court of New South Wales restraining the two directors of Astarra Asset Management Pty Ltd, the investment manager for the [ASF] from leaving or attempting to leave Australia," the corporate regulator said in its statement.
"ASIC did not publicise its investigation prior to this date as to do so would have potentially prejudiced this application."
In response to a direct question to name the financial advisers and accountants who ASIC has investigated for encouraging investors to establish SMSF and invest in Trio funds, the corporate regulator declined to provide names.
"ASIC has imposed administrative bans on a number of financial advisers in respect of the advice that they provided to their clients in respect of their investment in Trio Capital funds," it said.
"These bans prevent these persons from providing financial services for a specified period of time."
ASIC provided another guarded response to whether it believed financial advisers or accountants involved in steering SMSF funds investors into Trio funds should have known the risks of the investment.
"ASIC expects financial advisers recommending investment in a given financial product to clients, particularly retail clients at the time of giving this advice to point out the risks associated with that investment," ASIC said.
ASIC provided no response to a question as to what date the advisers should have informed their clients of the risks associated with their Trio investments.
Trio Capital was formerly the trustee of five superannuation entities and the responsible entity for 25 managed investment schemes, including the ASF, according to a separate ASIC statement.
Trio collased in late 2009, with the ASF reported having assets of $125 million.
The PJC will deliver its final report to government this week.
