Media and information releases

03-298 Herbert Geer & Rundle gives undertaking to ASIC

Thursday 11 September 2003


The Australian Securities and Investments Commission (ASIC) has
accepted an enforceable undertaking from Melbourne law firm Herbert
Geer & Rundle, from Mr Anthony Henry May, and from two responsible
entities of managed investment schemes.

The enforceable undertaking follows an ASIC investigation into over a
thousand letters signed by Mr May, a lawyer employed with the firm,
which in ASIC's view encouraged recipients to invest in schemes
operated by the responsible entities.

Some of the letters were on Herbert Geer & Rundle letterhead. Between
2000 and 2002 the letters were sent to existing investors in the
schemes, to prospective general investors and to members of the
Victorian bar.

Neither Herbert Geer & Rundle nor Mr May holds an AFS licence nor are
they authorised by the holder of an AFS licence to give financial
product advice.

ASIC was also concerned that these letters may have contravened the
terms of the licences issued to the companies in relation to their
roles as responsible entities for the agricultural schemes.

Mr May, W.A. Blue Gum Ltd, Mediterranean Olives Estate Ltd and Herbert
Geer & Rundle have denied any contravention of the law but have
acknowledged ASIC's concerns. Under the terms of the enforceable
undertaking they have agreed they will not allow any similar letters
to be published in the future.

The companies have further undertaken to strengthen their compliance
procedures, and to engage an independent consultant to monitor and
report on their compliance programs for the next two years. The
compliance reports will also be provided to ASIC.

Background
W.A Blue Gum Ltd is the responsible entity for a registered managed
investment scheme known as the W.A. Blue Gum Project, which is a
long-term forestry investment scheme, based upon the cultivation of
Tasmanian blue gum plantations in Western Australia.

Mediterranean Olives Estate Ltd is the responsible entity for a
registered managed investment scheme known as the Mediterranean Olives
Project, which is based upon the cultivation of olive groves in the
Bendigo region of Victoria.

Mr May is a director of both W.A Blue Gum and Mediterranean Olives
Estate, as well as a member of Herbert, Geer & Rundle.

End of release

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