Licensees warned on attracting regulatory attention
Financial services licensees have been warned to appropriately meet their compliance obligations if they wish to avoid attracting the attention of the regulators.
Legal practice, The Fold, has used its discussion forum to point out that in the past year alone, the regulator has cancelled eight Australian Financial Services Licences, suspended two licensees, with another seven currently under review.
"With late lodgement attracting fines and failure to lodge leaving you open to criminal and civil penalties, you would be foolish to put off the obligation assuming that ASIC won't chase this information," the law firm said.
It said that despite the cut of $120 million to its budget, ASIC was still working hard in the compliance space.
"With ASIC having the power to also publish the details of licensees who have been suspended or banned from operating, failure to comply not only leaves you financially vulnerable but could also throw your reputation into question," the discussion said.
"Like a red rag to a bull, ASIC sees a failure to lodge as a sign that there may be other circumstances of non-compliance," it said. "To reduce the risk of shirking your responsibilities, make compliance with ASIC reporting time frames a priority and implement strong systems to ensure you meet all requirements."
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