Australia's financial services and markets regulator suspended Sydney-based asset manager Holon Investments from offering or distributing three crypto funds to retail investors for 21 days, according to a press release.
TMD is a document which describes the target customer for an investment product. ASIC said it is concerned that Holon has not appropriately considered the features and risks of the Funds in determining their target markets.
The regulator believes Holon's crypto funds are not suited to the wide target market defined in their TMDs, which includes investors ranging from potentially medium, high or very high risk and return profile.
The suspension applies to Holon's bitcoin, ethereum, and filecoin funds. All three funds are managed by the crypto exchange Gemini.
"If the ASIC's concerns are not addressed in a timely manner, final stop orders will be placed on the funds," the press release said. "Holon will have an opportunity to make submissions to ASIC before any final stop order is made," it added.