ASIC sniffing around LM collapse The corporate watchdog is reviewing LM Investment Management's financial services license following the company's collapse into administration. Headed by high profile Gold Coast businessman Peter Drake, the company is responsible for managing at least $750 million on behalf of thousands of investors. Its investments include a $240 million loan to Maddison Estate, a housing development in the Gold Coast hinterland associated with Mr Drake. The company holds an Australian Financial Services License allowing it to run managed investment schemes. "We have not cancelled LM Investment Management's AFSL," an Australian Securities and Investments Commission spokesman said. We are currently reviewing the operation of the AFSL in light of the appointment of the voluntary administrator. LM Investment Management's directors appointed John Park and Ginette Muller of FTI Consulting as voluntary administrators on March 19. Mr Park and Ms Muller have said they do not regard investors in the fund as creditors of LM Investment Management. They have also indicated they will consider handing the company back to directors under a deed of company arrangement.