The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licences of Adelaide business Mark Power Financial Pty Limited (MPF) and Mark Raymund Power, effective from 14 November.
According to ASIC, MPF’s business involved authorising individuals and companies to provide financial services including the provision of financial product advice and the trading of such products as derivatives, foreign exchange contracts and securities.
ASIC’s investigation found, among other breaches, that MPF had failed to carry out appropriate background checks before appointing authorised representatives; failed to determine whether its representatives complied with financial services laws; failed to identify and remedy various misleading or deceptive statements on the websites operated by its authorised representatives; and failed to have in place a robust mechanism for remedying breaches.
The regulatory body determined that, as the responsible manager for MPF, Power does not understand the obligations of an AFS licence and lacks knowledge of legal requirements relating to the appointment of authorised representatives.
ASIC stated that no findings have been made in its investigation about the conduct of any authorised representatives.
MPF and Power have applied to the Administrative Appeals Tribunal seeking a stay and review of ASIC’s decision.
