ASIC is seeking orders from the Federal Court to restrain Royce Capital Investments Pty Ltd, Royce (Aust) Real Estate Pty Ltd (RARE), Louie Kortesis and Paul Chiodo from advertising, promoting or accepting money in Australia for Royce Global Investments LP (registered in the Cayman Islands), Royce Global Real Estate LP (registered in the Cayman Islands) and Royce Private Investments Fund LP (registered in Delaware, USA).
ASIC’s proposed orders would also restrain Royce Capital, RARE, Mr Kortesis and Mr Chiodo from advertising, promoting or accepting money for financial products generally in Australia.
ASIC alleges that in August 2025, Royce Capital raised $1.536 million from five Australian SMSF investors, purportedly for investment in one or more of the above offshore funds. ASIC alleges that:
- Royce Capital provided financial services without holding an Australian financial services licence;
- Mr Kortesis and Mr Chiodo were involved in Royce Capital’s alleged unlicensed conduct, and that
- Royce Capital and/or RARE made misleading or deceptive representations in brochures provided to some investors, including to the effect that they would receive a guaranteed or fixed return of 13% per annum.
Background
Mr Chiodo is also the subject of Federal Court proceedings in relation to the Shield Master Fund (26-133MR).
Consumer information
ASIC has issued a consumer alert warning amid increasing concerns that people are being enticed to invest their retirement savings into complex and risky schemes: 25-120MR Consumer alert – ASIC warns about pushy sales tactics urging people to make quick superannuation switches.
Be super smart, visit ASIC’s Moneysmart campaign page.
