ASIC suspends planning group for compliance failures
The Australian Securities and Investments Commission (ASIC) has suspended the licence of a boutique planning group for three months for a failure to comply with its compliance obligations, a year after also cancelling its' credit licence.
ASIC stated it had suspended the Australian financial services Licence (AFSL) of Brisbane based Protect Ensure Pty Ltd claiming it had "failed to lodge true and fair annual accounts, together with an auditor's report before 31 October of the relevant year" and the failed to report this breach to the regulator.
The breaches were discovered by ASIC after it conducted surveillance which found that Protect Ensure had also "failed to ensure it had adequate financial resources to provide its services and to carry out supervisory arrangements of its representatives".
The period for the suspension of the AFSL - 23 September to 19 December of this year - will restrict Protect Ensure from providing advice to new or existing clients with ASIC writing to advisers of the group and requiring them to notify clients of the suspension and freeze on advice.
Aside from the suspension ASIC will also require Protect Ensure to update and audit its accounts to ASIC's satisfaction and show it has adequate financial resources to operate its licence.
ASIC's investigation into the group's conduct is continuing and follows the July 2014 cancellation of Protect Ensure's credit licence over concerns it had ceased to be a member of an external dispute resolution service.
Protect Ensure retains the right to seek a review of ASIC's decision at the Administrative Appeals Tribunal.
AUTHOR
Jason Spits
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
