Harts subsidiary Cardinal Financial Services has vowed to fight the Australian Securities and Investments Commission (ASIC) over its decision to revoke its dealers licence.
“The directors of Cardinal categorically state that the action that ASIC has taken is incorrect and that their findings of fact are erroneous and they have exercised their discretion invalidly,” Harts says.
An application is being lodged today with the Administrative Appeals Tribunal for a review of the decision by ASIC and a stay as to the revocation of the licence until that decision has been reviewed. It is anticipated that this stay will be granted in the very near future.
“The directors of Cardinal are categoric in their opinion that ASIC will be shown to have acted incorrectly in this matter and believe that the application to review the decision will be upheld,” Harts says.
Cardinal continues to operate its business in offering trustee services to operations not listed on its currently revoked licence. This area of its business to be continued generates the majority of income for Cardinal. Only two operations will be affected by the revocation.
Harts says some of ASIC’s concerns relate to actions by Cardinal prior to its $9 million acquisition in August last year.
The decision by ASIC to revoke Cardinal’s licence followed a surveillance visit in December last year during which ASIC became concerned that Cardinal had seriously breached a number of its licence conditions and responsibilities.
ASIC director of financial services regulation Ian Johnston said Cardinal had seriously breached a number of their licence conditions.
“ASIC will not hesitate to revoke a licence when the licensee fails to demonstrate to operate as they are required to by law,” he said.
