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”.