Australia’s financial watchdog has taken legal action against a company linked to the collapse of the Sterling First Group.

More than 100 investors have lost their life savings through the long-term lease for life scheme — as 12 companies under Sterling’s complex web of entities went into administration.

The Australian Securities and Investment Commission has now launched Federal Court action against financial services licensee Theta Asset Management and its managing director.

ASIC alleges Theta failed to ensure product disclosure statements for the Sterling Income Trust weren’t misleading or deceptive.

Sterling victims’ advocate Cath Dall told Gareth Parker it’s a good start — but ASIC should have acted sooner.

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