ASIC cancels licence of Melbourne practice

The Australian Securities and Investment Commission (ASIC) has cancelled the Australian Financial Services Licence (AFLS) of Melbourne-based practice FP Investment Partners (FPIP).

The AFSL was cancelled on 18 November after an ASIC investigation and subsequent hearing found that FPIP had failed to ensure that one of its authorised representatives, Joshua David Fuoco, had complied with financial services laws.

ASIC found that FPIP did not have adequate controls in place to manage conflicts of interest. Additionally, the regulator found that FPIP failed to take reasonable steps to ensure that Fuoco had a reasonable basis for his financial advice when he recommended two unregistered managed investment schemes to his clients.

"FPIP failed to do all things necessary to ensure that the financial services business covered by its AFS licence was provided efficiently, honestly and fairly," said ASIC.

FPIP has lodged an application with the Administrative Appeals Tribunal for a stay of ASIC's decision.

Fuoco, the current sole director of FPIP, was banned from providing financial services for five years by ASIC on 13 January 2010.

ASIC also recently banned Rory Mor Macleod Deutsch of Box Hill North Victoria from providing financial services for four years. Deutsch was a responsible manager and key person on FPIP's AFSL since 13 September 2005.