ASIC suspends Paritech licence



The Australian Securities and Investments Commission (ASIC) has suspended the Australian financial services licence of financial software provider Paritech for 12 months after the company failed to comply with a number of its obligations as a financial services licensee.
ASIC found that Paritech failed to lodge financial statements, auditor reports and auditor opinions over consecutive years, in breach of both its legal obligations and licence conditions and despite repeated demands from ASIC to comply. It did not advise ASIC of these breaches.
Paritech develops computer software packages to provide general financial product advice to retail clients. According to their website, over 200,000 investors, traders, brokers and finance institutions use Paritech online trading and investment systems and tools.
Major clients include IOOF Portfolio Online, JB Global Investment Services, Menzies Securities, Martin Place Securities and Halifax Investments Services, according to the website.
According to an ASIC spokesperson, suspension of Paritech's licence means it has to cease trading, including servicing existing clients. ASIC said it may consider revoking the suspension period in the event Paritech lodges the outstanding reports.
Paritech chief executive Rick Klink said that the 2009 and 2010 accounts had been lodged, but not in the correct sequence due to a change in the company's auditors.
He said the suspension only affects Paritech's retail clients rather than their wholesale clients, and the firm would be issuing a press release shortly.
When contacted yesterday one client who uses their software was unaware of the suspension.
Update
JB Global contacted Money Management to say they use one Paritech Pulse terminal that provides a function that isn’t provided through IRESS, and that the impact of the Paritech situation on JB Global clients will be zero.
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.