The Australian Securities and Investments Commission (ASIC) has taken action to restrain two Australian registered companies, headed by one of the operators of the Shield Master Fund, from accepting money for three overseas registered investment firms after receiving some funds from SMSF investors.
The corporate regulator stated it was seeking a hearing before the Federal Court for 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 Royce Global Investments LP, Royce Global Real Estate LP – both registered in the Cayman Islands – and Royce Private Investments Fund LP, which is registered in Delaware in the United States.
Chiodo is one of the former directors of Keystone Asset Management, which operated and managed Shield, and court documents lodged by ASIC name Keystone and Chiodo as the first and second defendants, respectively, in the restraining order matter, which would also prevent the parties named above from advertising, promoting or accepting money for financial products generally in Australia.
As part of its case, ASIC has alleged that from 5 to 18 August 2025, Royce Capital raised $1.536 million from five Australian SMSF investors after each of them had signed a subscription agreement offering to acquire interests in the Royce Private Investments Fund.
In doing so, the regulator also alleged Royce Capital provided financial services without holding an Australian financial services licence, and Kortesis and Chiodo were involved in Royce Capital’s alleged unlicensed conduct.
Additionally, it also claimed Royce Capital and/or Royce (Aust) Real Estate made misleading or deceptive representations in brochures provided to some investors that claimed they would receive a guaranteed or fixed rate of return of 13 per cent a year.
Federal Court proceedings in relation to the Shield Master Fund are still ongoing and Chiodo remains a subject of those proceedings.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason