‘Competency failures’ lead to Sydney AFSL cancellation
ASIC has cancelled the AFSL of Sydney-based Spectre Financial Group, describing how it demonstrated “competency failures” in its activities.
The licence was previously suspended in May 2024 but has now been formally cancelled by the corporate regulator as ASIC was concerned clients had an increased risk of financial loss if Spectre resumed activity.
The AFSL was initially suspended for six months from May to November 2024, and again for a second six-month period until May 2025.
Having held its AFSL since October 2018, the Sydney firm was authorised to provide general financial product advice and deal in derivatives and FX contracts to retail and wholesale clients.
“ASIC cancelled the AFS licence because it found Spectre had failed to maintain the organisational competence to provide the financial services covered by its licence. This included failure by Spectre to appoint sufficient responsible managers with the appropriate knowledge and skills to provide general financial product advice and deal in derivatives and foreign exchange contracts.”
Spectre ceased carrying on a financial services business approximately three years ago and had not resumed providing financial services. During this period, Spectre also underwent three changes in ownership, as well as changes to its directors and responsible managers.
Spectre has a right to apply to the Administrative Review Tribunal for a review of ASIC’s decision.
Earlier this month, another Sydney AFSL Calaite Capital saw its AFSL cancelled on 5 May following a payment by the Compensation Scheme of Last Resort. On 8 July 2024 and 31 October 2024, the Australian Financial Complaints Authority (AFCA) made two determinations against Calaite Capital, which Calaite Capital failed to pay.
Subsequently, on 2 April 2025, the CSLR had two payments totalling $267,235.57 for the AFCA determinations and notified ASIC.
The firm describes itself as a “professional asset manager and investment adviser for wholesale clients and institutes in Australia” on LinkedIn.
AUTHOR
Laura Dew
Recommended for you
Determinations by the FSCP since the start of 2025 are almost double the number in the same period of 2024, with non-concessional contribution cap errors and incorrect advice among the issues.
Whether received via human or digital means, financial advice is reportedly leading to lower stress and more confidence, according to Vanguard.
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
