Adelaide-based AFSL sees licence suspended
ASIC has suspended the Australian financial services (AFS) licence of a managed investment scheme and general advice provider after it failed to lodge financial statements and audit reports for the financial years 2019-2022.
The AFS license of Adelaide-based Lantern RE Ltd, the responsible entity of the registered management investment scheme, Fracprop Fund, was suspended until 29 May 2024.
Along with managed investment schemes, the firm provided general financial product advice to wholesale and retail clients.
Prior to this suspension, it had held its AFS licence since 4 January 2011.
ASIC found that Lantern had failed to lodge financial statements and audit reports for the financial years 2019-2022. Additionally, it did not lodge compliance plan audit reports for Fracprop for financial years 2020-2022.
At the end of the suspension period, if Lantern failed to rectify these breaches, the corporate regulator could take further action.
Lantern may apply to the Administrative Appeals Tribunal for a review of ASIC's decision.
Earlier this year, the Federal Court had found that four current and former directors breached duties as officers of a responsible entity of a registered managed investment scheme and did not act in the best interests of members.
It was found the four individuals from Linchpin Capital Group and Endeavour Securities “did not take the proper steps to ensure they complied with the law” in managing $17 million through a registered managed investment scheme.
ASIC would seek orders from the Court, imposing pecuniary penalties and periods of disqualification against the current and former directors from managing corporations.
AUTHOR
Rhea Nath
Recommended for you
With HNW investors representing the largest market for alternative assets, Praemium and CoreData research underscores why this presents a compelling opportunity for advisers.
Having completed the successful integration of Diverger, Count has upgraded its forecast for expected synergy benefits achieved by the acquisition by a third.
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
Iress has increased its forecast adjusted EBITDA by $5 million for the 2023/24 financial year in light of the sale of its platform business to Praemium and hinted at a return to dividend payments.
Add new comment