The Australian Securities and Investment Commission (ASIC) has placed an interim stop order blocking Holon Investments Australia Limited from offering or distributing three funds to retail investors due to “non-compliant target market determinations (TMDs).” The order is for 21 days unless it is revoked. ASIC expects Holon to take immediate action to ensure compliance.
ASIC said the decision was made to “protect retail investors from potentially investing in funds that may not be suitable for their financial objectives, situation or needs.”
ASIC added that it was concerned that Holon was not acting appropriately, considering the risk involved in determining its target market.
The single-asset funds include the following:
Holon Bitcoin Fund ARSN 659 090 294
Holon Ethereum Fund ARSN 659 090 516
Holon Filecoin Fund ARSN 659 090 614
Noting that crypto assets are highly volatile and risky, speculative investments, ASIC did explain that Holon had cautioned investors they could face total loss due to the nature of the assets.
ASIC explained that it considers that the Funds are not suited for retail investors because:
- a potentially medium, high or very high risk and return profile; and
- intending to use the fund as a satellite component (up to 25%) of their investment portfolio; and
- intending to use the fund as a solution/standalone component (75-100%) of their investment portfolio.
ASIC said it may consider further regulatory action in relation to Holon and the Funds.