ASIC cancels AFSL of failed financial services provider
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services Licence (AFSL) and credit licence of a financial services provider after it was unable to comply with its licence conditions.
The cancellation of both licences by ASIC held by Capital Advisers Pty Ltd, formerly known as Freeman Fox Pty Ltd, follows concerns by ASIC that the group did not have adequate compensation and insurance arrangements and failed to have measures in place to ensure its organisational competence.
As a result of ASIC’s concerns Capital Advisers has ceased offering financial services. It had appointed external administrators in early January and went into liquidation at the start of last week.
ASIC has the power, under the Corporations Act, to suspend or cancel an AFSL, without holding a hearing in the event a licensee is placed under external administration.
AUTHOR
Jason Spits
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
