EQT Holdings (ASX:EQT) said its unit, Equity Trustees Superannuation, plans to fight the Australian Securities and Investments Commission's (ASIC) allegations of onboarding failures related to the First Guardian Master Fund, according to a Thursday filing with the Australian bourse.
Earlier the same day, the regulator launched civil penalty proceedings in the Federal Court against Equirt Trustees, claiming that it did not obtain critical information before allowing members to invest in First Guardian. The ASIC also alleges that Equity Trustees permitted the investments despite evidence that the fund "was or may have been illiquid."
The regulator is seeking compensation for members' losses, as well as declarations and civil penalties.
"We believe that First Guardian is primarily a case of alleged and widespread fraud, and that the focus should be on those parties," Equity Trustees Managing Director Mick O'Brien said, adding that his company acted in line with its fiduciary duties and obligations.
Member losses through the fund for which Equity Trustees was the trustee total about AU$70 million, the company said.
Shares of EQT Holdings fell 7% in recent Thursday trade.
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