ASIC suspends financial planning practice license for lack of PI



Perth-based financial advice firm, Ballast Financial Management has had its Australian Financial Services License (AFSL) suspended by the Australian Securities and Investments Commission (ASIC) for at least 10 weeks during which it can seek to obtain professional indemnity (PI) insurance.
ASIC said the Ballast AFSL had been suspended because it had ceased to carry on a financial services business because of its failure to obtain professional indemnity insurance.
The regulator said the 10-week suspension would give Ballast sufficient time to put in place adequate compensation arrangements.
“The suspension also provides Ballast an opportunity to identify and appoint an appropriately qualified and experienced responsible manager following the resignation of its previous responsible manage,” the ASIC announcement
It said that if Ballast was unable to demonstrate that it was in a position to recommence its financial services business by the end of the 10-week suspension, ASIC would consider cancelling its license.
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.