The Australian Securities and Investments Commission (ASIC) has given an increased focus on unlicensed operators providing financial product advice without an Australian financial services licence (AFSL).
For individuals, the penalty was a maximum of five years imprisonment or a fine of $126,000 while corporations could receive a penalty of $1.26 million.
The regulator said it had seen a “significant escalation” in complaints about unlicensed financial advice being provided through website, social media, cold calling and seminars.
ASIC was undertaking a range of surveillance and investigation into those individuals and corporations and was writing to those involved to warn them of the potential consequences. In other cases, ASIC was pursuing enforcement actions.
This included interim orders against Maliver Pty Ltd and director Melissa Caddick, against John Louis Anthony Bigatton, both in November, and against Larry Dawson and PW Kitt Co Pty Ltd in August.
People concerned about unlicenced activity could contact ASIC through https://asic.gov.au/complain or 1300 300 630.
