The Australian Securities and Investments Commission (ASIC) is investigating how Seo’s management of its own investments and trading practices may have caused the company to miss out on billions of dollars of market value.
ASIC is examining the accounting and risk management practices of the $6.3 billion fund.
The ASIC has already opened an investigation into the accounting practices of other companies involved in the fund, which it says is “not consistent with accounting standards”.
The agency has also asked the firm to provide a list of all the transactions it has made and for any relevant financial records.
The ACCC is also investigating the company’s management and compliance with Australia’s securities laws.
“The investigation is focused on the accounting standards and compliance of the fund as well as the compliance of all of its stakeholders,” ASIC’s Acting Chair and Chief Compliance Officer, Fiona Stewart, said in a statement.
“It will be examining the way the fund is managed, its management of accounts, its accounting and the reporting of the performance of the funds management.”
The ASX listed Seo as one of the most liquid and diversified mutual funds in the country, but its management has come under fire for its trading practices.
The fund has been dogged by allegations of fraud and manipulation of the stock market, which the company denies.
In the summer of 2016, the fund’s shares fell by more than a quarter in value after trading on the Australian Securities Exchange was halted due to an investigation by the US Senate into allegations of manipulation of Australia’s stock markets.
On Friday, ASIC announced it would be looking at the management of the Australian Stock Exchange, and the Australian Financial Markets Authority has also opened an inquiry into the trading of the market.