interesting point Jonesboy.It seems as though they need to get a...

interesting point Jonesboy.

It seems as though they need to get a new RE to get around all this? Anyone have any ideas on such a process and how all this might pan out?

"In addition, RHAL obtained an Investment Management Insurance package (IMI policy) on behalf of its subsidiaries
(including RAML, which is required to have professional indemnity (PI) and crime/fraud cover in place as part of its
Australian Finance Services Licence (AFSL) requirements). However, as a result of the appointment of the receivers
and managers to RHAL, RAML was informed that the entire IMI policy entered into run-off mode (meaning that the
policy would only cover RAML for certain acts, and only in respect of the period prior to the date that the receivers and
managers were appointed to RHAL (being 7 November 2008) until expiry of the policy on 1 May 2009. RAML has
informed the Australian Securities and Investments Commission (“ASIC”) of this potential breach of its AFSL and has
been actively seeking replacement cover via its insurance broker. As a result of this process, no replacement cover
has been found to date and it is now unlikely that replacement cover will be forthcoming.
On 17 February 2009, RAML received a letter from ASIC stating that ASIC would be reviewing RAML’s application for
a no-action letter (in respect of the AFSL licence breach). ASIC also advised that, since Section 912A(1)(b) of the
Corporation Act 2001 states that an AFSL holder must comply with the conditions of its license, including the
maintenance of an insurance policy covering PI and fraud, it is also considering commencing action to suspend or
cancel RAML’s licence. To assist ASIC with its decisions, RAML has advised ASIC of the effect on the members of the registered schemes which RAML acts as responsible entity, including the Trust, were ASIC to cancel or suspend
RAML’s licence.
If ASIC suspends or cancels RAML's licence, RAML will no longer be in compliance with its obligations under section
601 of the Corporations Act. At this time the impact of this risk is unquantifiable in RJT due to uncertainty on ASIC’s
potential actions, and while timing is uncertain, it is expected that this process will take some time to complete."