ASIC cancels AFS licence of KP International Group Australia
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Sydney-based financial services provider, KP International Group Australia.
The move followed an earlier suspension of the company’s licence until 23 September when it was identified that the it failed to “adequately address systemic issues identified by the Financial Ombudsman Service and that certain exclusions in KP’s professional indemnity insurance cover did not meet minimum adequacy”.
The regulator was notified that after the suspension commenced all relevant officers of the company had resigned and, as a result of which, the company had ceased to carry on a financial services business.
ASIC said that in light of this fact, it had made a decision to cancel the company’s AFS licence.
Additionally, the regulator said that the Australian Financial Complaints Authority (AFCA) had received multiple complaints from people located offshore regarding a company purporting to be KP International Group Australia.
At the same time, ASIC had no further knowledge regarding an existence of a link between the entity provoking the complaints to AFCA and the formerly licensed Australian entity.
ASIC would continue its inquiries and advised clients to “exercise caution in relation to any company purporting to offer financial services under the name KP International Group Australia”.
AUTHOR
Oksana Patron
Recommended for you
ETF provider VanEck has announced its intention to launch a uranium and energy solution as global political agendas point to expansion in this sector.
PIMCO has announced the launch of a new active fixed-income ETF, marking its fifth active solution on the Australian market after the launch of four ETFs earlier in the year.
With the Australian advice market being a target for US private equity firms, a US advice commentator has shared lessons from his overseas experience, and why PE may be less attractive than initially expected.
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
