Key Takeaways
- • ASIC is seeking Federal Court orders to restrain Royce Capital Investments Pty Ltd, Royce (Aust) Real Estate Pty Ltd, Louie Kortesis and Paul Chiodo from advertising, promoting or accepting money in Australia for three overseas investment vehicles.
- • ASIC alleges Royce Capital raised $1.536 million from five Australian SMSF investors between 5 and 18 August 2025 for the Royce Private Investments Fund LP, a Delaware-registered fund.
- • ASIC alleges Royce Capital provided financial services without an Australian financial services licence, with Kortesis and Chiodo involved in the alleged unlicensed conduct.
- • ASIC alleges misleading representations in investor brochures promising a guaranteed or fixed return of 13 per cent a year.
- • Paul Chiodo is a former director of Keystone Asset Management, which operated and managed the Shield Master Fund; Federal Court proceedings over Shield remain ongoing.
Summary
The Australian Securities and Investments Commission (ASIC) has moved to restrain two Australian-registered companies, headed by an operator of the Shield Master Fund, from accepting money for three overseas-registered investment firms. According to the regulator, it is seeking a Federal Court hearing and orders against Royce Capital Investments Pty Ltd, Royce (Aust) Real Estate Pty Ltd, Louie Kortesis and Paul Chiodo. The proposed orders would prevent them from advertising, promoting or accepting money in Australia for Royce Global Investments LP and Royce Global Real Estate LP, both registered in the Cayman Islands, and Royce Private Investments Fund LP, registered in Delaware.
Chiodo is a former director of Keystone Asset Management, which operated and managed Shield. Court documents lodged by ASIC name Keystone and Chiodo as the first and second defendants in the restraining order matter. The orders would also bar the named parties from advertising, promoting or accepting money for financial products generally in Australia.
ASIC alleges that between 5 and 18 August 2025, Royce Capital raised $1.536 million from five Australian SMSF investors, each of whom had signed a subscription agreement to acquire interests in the Royce Private Investments Fund. The regulator further alleges that Royce Capital provided financial services without holding an Australian financial services licence, and that Kortesis and Chiodo were involved in that conduct. ASIC also claims that Royce Capital and/or Royce (Aust) Real Estate made misleading or deceptive representations in brochures that promised investors a guaranteed or fixed return of 13 per cent a year.
Federal Court proceedings relating to the Shield Master Fund are continuing, and Chiodo remains a subject of those proceedings. These allegations have not been tested in court.
Chiodo is a former director of Keystone Asset Management, which operated and managed Shield. Court documents lodged by ASIC name Keystone and Chiodo as the first and second defendants in the restraining order matter. The orders would also bar the named parties from advertising, promoting or accepting money for financial products generally in Australia.
ASIC alleges that between 5 and 18 August 2025, Royce Capital raised $1.536 million from five Australian SMSF investors, each of whom had signed a subscription agreement to acquire interests in the Royce Private Investments Fund. The regulator further alleges that Royce Capital provided financial services without holding an Australian financial services licence, and that Kortesis and Chiodo were involved in that conduct. ASIC also claims that Royce Capital and/or Royce (Aust) Real Estate made misleading or deceptive representations in brochures that promised investors a guaranteed or fixed return of 13 per cent a year.
Federal Court proceedings relating to the Shield Master Fund are continuing, and Chiodo remains a subject of those proceedings. These allegations have not been tested in court.
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