ASIC cancels Sovereign Capital’s FSL
The Australian Securities and Investments Commission has cancelled the Australian financial services licence of Sovereign Capital Limited.
The regulator announced this afternoon that it had cancelled the licence after finding Sovereign’s activities “have been well below the standard a reasonable person would expect of a financial services licensee”.
It said that in particular it had been concerned about Sovereign’s conduct in relation to disclosure, management of conflicts, due diligence and fairness between investors, finding that, amongst other things, the company had not operated the fund in an efficient, honest and fair manner, acted in accordance with financial services laws or complied with its obligations as a licensee.
The Sovereign Prudential Fund is involved in lending money to property developers in NSW, Queensland and Victoria and ASIC intervened early last month after an application sought by Sovereign to wind up the fund.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
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.
