A manager of listed fixed income securities linked to corporate debt issues (including bonds issued by a number of financial institutions) has been caught up in ASIC court action against fund manager Theta Asset Management.ASIC announced yesterday that it had commenced proceedings against Theta and its managing director Robert Marie, alleging that they were responsible for authorising five defective product disclosure statements for a product called Sterling Income Trust.ASIC alleges that Theta and Marie failed to ensure that each of the product disclosure statements did not contain misleading or deceptive statements, or omissions.At the same time, Australian Corporate Bond Co, an agent for Theta, requested that all Exchange Traded Bond units listed on the ASX be put into a trading halt.The company said the issue facing Theta "may impact the market for all classes of XTB".There are 41 XTBs listed on the ASX. They are securities that provide a beneficial interest in the underlying bonds. They can be bought and sold on exchange, with prices changing in response to changes in the market prices of the underlying bonds.If they are held to maturity they will be redeemed by the issuer at face value.They offer retail investors exposure to corporate bonds and other debt securities that would ordinarily only be available to institutional or wholesale investors. All XTBs are backed by investment grade, senior corporate debt.Australian Corporate Bond Co launched its first XTBs in May 2015. XTBs provide exposure to debt securities issued by AMP, ANZ, Bank of Queensland, Macquarie Group, NAB and Westpac.Trading in all XTBs has been suspended. Whether this will impact the underlying securities remains to be seen.Australian Corporate Bond Co chief executive Richard Murphy said Theta was its responsible entity - a relationship that is conducted at arm's length.Murphy said: "We asked for the trading halt as a prudent measure to assess the situation. If necessary, we can change our responsible entity and that would be done without any disruption to the XTBs, which are held by a custodian."