ASIC has alleged that Avestra AM failed to act in the best interests of scheme members, and failed to exercise the required degree of care and diligence.
Avestra AM also contravened its obligation to "do all the things necessary to ensure that the financial services provided under its licence are provided efficiently, honestly and fairly", said ASIC.
The Gold Coast-based fund manager was convicted and fined $40,000 in the Melbourne Magistrates' Court on 16 December 2014 for breaching takeover laws.
Avestra AM is the trustee of a number of managed investment schemes that comprise approximately $18.5 million in funds under management.
"Among other things, ASIC alleges that Avestra borrowed money on an unsecured basis from the property of its schemes, and invested scheme property in entities and offshore funds connected to its directors without proper due diligence or regard for the interests of members," said ASIC.
"ASIC is seeking interim orders to appoint provisional liquidators or receivers to take control of Avestra's assets and report on, among other things, any suspected contraventions of the law, any losses suffered by scheme members, and whether the schemes ought to continue in operation (under a new responsible entity) or whether they should also be wound up.
"ASIC is seeking final orders that Avestra be wound up on a just and equitable basis," said ASIC.
The first hearing of the matter is listed for Thursday 17 September 2015.
