In Australian Securities and Investments Commission v Letten (No 7)  FCA 1231, the receivers and managers appointed to the property of the schemes sought directions from the Court to the effect that the scheme property ought to be distributed proportionately to the claims, as assessed by the receivers, given that it was near impossible to determine entitlements with respect to the individual schemes following a complicated collapse.
The circumstances of this case were that:
- it was estimated that 916 investors had invested over $100 million in the schemes as consideration to acquire rights to benefits produced by the acquisition of a particular identified asset or assets;
- the funds were mixed for at least 12 years during which there were in excess of 110,000 transactions through the relevant bank accounts; and
- the receivers concluded that to attempt to reconstruct the accounts and trace individual investor contributions to a particular scheme and into particular assets would cost approximately $18 million.
In the exceptional circumstances of this case, the Court accounted for commercial realities and took a pragmatic approach rather than strictly following the general principle that there should be no distribution of surplus assets of a managed investment scheme other than to the members of that scheme.