By GABRIEL KATUHO
THE Securities Commissions of PNG has revoked the trustee license of Melanesia Trustee Services Limited (MTSL) and appointed Weatherman Capital Advisors Limited as the new interim trustee over the Pacific Balance Fund (PBF).
The move was taken after the PNGSEC conducted an investigations following various complaints by the fund’s shareholdersholders on the performance of MTSL over the fund (PBF) and its conduct on the recently-proposed Trukai share buy-back arrangement.
The investigation started on 29th June. In the investigation, the commission reviewed the trust deed, historical financial performances of PBF, and all unit-holder concerns raised against MTSL in their capacity as trustee and fund manager.
The investigation revealed that MTSL had not properly discarded its duties in accordance with the trust deed.
Several breaches of MTSL’s duty to unit-holders have been identified, raising concerns about conflict of interest, lack of transparency, and potential disadvantages for unit-holders.
The commission has now tasked Weathermen as interim trustee to fix up PBF and deliver several duties and functions that has been lacking in the performance of MTSL during its term.
