South Australian company First Pacific Securities Australia (FPSA) has had its Australian financial services licence (AFSL) cancelled following an investigation by the Australian Securities and Investments Commission (ASIC).
ASIC found that FPSA, the responsible entity of registered managed investment scheme First Pacific Mortgage & Mezzanine Fund, which pooled investor funds then on lent to borrowers, had not complied with a number of its reporting and financial obligations.
Furthermore, ASIC determined there was reason to believe FPSA would not comply with it Corporation Act obligations as a financial services licensee in the future.
The investigation also discovered FPSA’s application for an AFSL reported a false balance sheet which made it appear to meet its financial obligations to obtain a licence.
The company has the right to appeal ASIC’s decision with the Administrative Appeals Tribunal.
