ASIC accepts EU from Barclays

ASIC EU Barclays

23 March 2017
| By Oksana Patron |
expand image

The Australian Securities and Investments Commission (ASIC) has accepted enforceable undertaking from Barclay’s foreign financial services providers based in the US, Hong Kong and the UK due to the significant breaches of the conditions of the ASIC class order licensing exemptions.

According to the regulator, all three entities which included:

  • Barclays Capital Inc. (BCI) domiciled in the US;
  • Barclays Capital Asia Limited (BCAL) domiciled in Hong Kong; and
  • Barclays Capital Securities Limited (BCSL) based in the UK

had failed to disclose to their clients they were exempt from holding an Australian financial services licence (AFSL) and were regulated by the respective overseas regulatory authority.

Additionally, the Barclays’ entities failed to report these material breaches within the 15-day timeframe which meant they had automatically excluded themselves from the benefit of the ASIC class order licensing exemptions.

According to ASIC, in particular BCI and BCAL failed to demonstrate that the requisite disclosure was made to clients in 2004 and 2006, respectively.

At the same time, BCSL was not able to demonstrate that the requisite disclosure to clients had been made across a 10-year period from 2004 and 2014.

BCI had also failed to notify ASIC of certain offshore investigation and enforcement matters within the time required of foreign financial services providers.

As part of the terms of the EU, the Barclays entities would contribute $500,000 to The Ethics Centre for research and development into the provision of financial services to Australian clients.

Also, the Barclays entities must engage an ASIC-approved independent expert to, among other things:

  • Review and test the compliance framework implemented by the Barclays entities following the reporting of breaches, to meet the relevant conditions of the ASIC licensing exemption; and
  • Report any deficiencies and make recommendations on how to rectify those deficiencies to ensure effective and enduring compliance with the relevant conditions of the ASIC licensing exemption.

ASIC Commissioner Cathie Armour said: “Foreign financial services providers relying on a class order licensing exemption must have effective and enduring measures to ensure compliance with the conditions set out in these instruments, including the fundamental obligations relating to disclosure and reporting,”

“Entities that fail to self-report a breach of their obligations to ASIC within the required time will be subject to automatic and indefinite exclusion from the licensing exemption provided by these instruments.”

Read more about:


Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry



Planners will be in short supply, with only 376 in FY23–24. In my experience, of this number, only around 20% to 30% wi...

6 hours ago
Peter James

As usual there is no delineation in the article between risk specialist advisers and investment specialist advisers. Thi...

7 hours ago
Mark Harris

Is he serious, improvements from legislation change, all I see is more ASIC compliance and higher costs, this government...

8 hours ago

Insignia Financial has unveiled a new operating model and executive team, including a new head of advice, while three senior executives are set to depart the licensee....

1 week 5 days ago

The $280 billion Australian Retirement Trust is the first superannuation fund off the block to report its performance for the 2023-24 financial year....

3 weeks 1 day ago

Analysis by Chant West of the annual performance of growth superannuation funds has uncovered which ones see the best performance....

5 days 2 hours ago


Fund name
Ardea Diversified Bond F
144.00 3 y p.a(%)
Hills International
63.39 3 y p.a(%)