ASIC allowed 'insolvent ISG' to operate for more than a year before $145m collapse
The collapse of property and business investment group ISG has cost 1,600 investors millions of dollars but the murky circumstances surrounding its demise suggest it could have been prevented from trading far sooner than it was - sparing hundreds from financial ruin.
ASIC has come under major public pressure over its failures regarding a string of corporate collapses. (Image source: RH Poetra/Shutterstock.com and API Magazine)
The nation’s embattled corporate regulator gave a failing $145 million property group its fundraising licence back despite it having frozen interest payments to investors — and been insolvent for five months.
Investigations show the Australian Securities and Investments Commission suspended the financial services licence of the failed ISG in July 2022.
Yet it reinstated the licence seven months later, in February 2023, despite the group having …
