ASIC cancels Sydney advice firm’s AFSL
ASIC has cancelled the Australian financial services licence of Sydney advice firm Crown Wealth.
The firm was authorised from 28 March 2017 to provide advice to retail and wholesale clients about products including superannuation, securities, deposit and payment products, interests in managed investment schemes and life products, and to deal in those products.
ASIC said the licence was cancelled as the firm has gone into voluntary administration. Sule Arnautovic of Salea Advisory was appointed as voluntary administrator on 13 March.
In February, Wealth Data reported that Crown Wealth had lost 22 advisers in the week to 16 February. Wealth Data founder Colin Williams noted most of these advisers at the “mid-tier licensee” had been appointed to different licensees earlier in the year.
It also lost a further 10 advisers in January and February, four of whom moved to Centrepoint Alliance.
The firm had 46 advisers at the start of 2022 and began this year at 36 – most of the advisers (15) joined Focused Financial Advice, seven joined Alliance Wealth and six joined Lifespan.
Under the Corporations Act, ASIC may suspend or cancel an AFS licence without a hearing if the licensee is under administration or is being wound up.
Crown Wealth has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
This is the fourth Sydney firm to have its AFSL cancelled since the start of the year; in January, Indie Advice had its AFSL cancelled after ASIC found it had “not been providing financial services for some time”.
This was followed by Brava Capital in February and Suetonius Wealth Management in March.
AUTHOR
Laura Dew
Recommended for you
ASIC commissioner Alan Kirkland has detailed the regulator’s intentions to conduct surveillance on licensees and advisers who are recommending managed accounts, noting a review is “warranted and timely” given the sector’s growth.
AMP and HUB24 have shared the areas where they are seeking future adviser growth, with HUB24 targeting adding more than 2,000 advisers to the platform.
Bravura Solutions has appointed a new chair and deputy chair to take over from departing Matthew Quinn, while Shezad Okhai picks up another responsibility.
Two advisers say M&A is becoming a “contact sport” as competition heats up to acquire attractive advice firms, while a lack of new entrants creates roadblocks in organic growth opportunities.
