Two AFSLs cancelled and one suspended
The corporate regulator has cancelled the Australian financial services licences (AFSLs) of Rebate Financial Services and Capstone Capital, and suspended the AFSL for KABM.
The Australian Securities and Investments Commission (ASIC) found Capstone Capital and Rebate Financial Services failed to lodge annual financial statements and auditor’s reports, and failed to maintain membership with an external dispute resolution (EDR) scheme approved by ASIC.
KABM was found to have failed to lodge financial statements and auditor’s reports for three consecutive years. The watchdog has suspended its licence until 1 May 2017 and if KABM does not lodge the required documents by this date, ASIC will consider whether the licence should be cancelled.
ASIC deputy chair, Peter Kell, said: “The annual lodgement of audited accounts is an important part of a licensee demonstrating it has adequate financial resources to provide the services covered by its licence and to conduct the business lawfully”.
“Membership of an EDR scheme is also an important requirement for licensees and ASIC will not hesitate to act against those who fail to comply with their responsibilities,” he said.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
