ASIC cancels licence of securities adviser
The Australian Securities and Investments Commission (ASIC) has cancelled the licence of a securities, derivatives and foreign exchange contracts adviser who had previously been subject to an enforceable undertaking.
ASIC cancelled the Australian financial services licence (AFSL) of AIE Fiduciary Services after the latter had applied for the cancellation.
ASIC had raised concerns regarding the management of AIE and its compliance with its AFSL obligations, particularly the monitoring and supervision of certain authorised representatives.
Last month the regulator had accepted an enforceable undertaking from a former director of AIE Fiduciary Services, Manish Babulal Jani, restricting him from managing a corporation for five years and having any involvement in financial services for two years.
At the time ASIC stated that Jani, who was a director from 18 April 2013 to 8 November 2013, had failed to uphold the obligations expected of him as the director of an AFSL.
ASIC stated that Jani failed to ensure that AIE carried out its obligations as an AFS licensee, to adequately supervise its authorised representatives, and to ensure its authorised representatives were adequately trained and competent to provide financial services.
It also stated that AIE had not met its statutory obligations, maintained proper books of account and was not solvent when company debts were incurred.
AUTHOR
Jason Spits
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
