Wholesale service provider AFSL cancelled
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services licence (AFSL) of wholesale service provider, Ergo Capital, for failure to comply with its licensee obligations.
The cancellation of Ergo Capital’s licence came into force on 23 June, 2016.
ASIC said that the firm failed to comply with many of its obligations, including:
- Lodgement of its financial statements within the required timeframe;
- Financial resource requirements;
- Notifying ASIC of significant breaches within 10 days; and
- Maintaining the competence to provide financial services authorised under its AFS licence.
ASIC said it had recently cancelled the AFS licences of three other wholesale service providers, including Dunfo Capital, Narrow Lane Investments and TMK Index.
ASIC commissioner, Greg Tanzer, stressed that the regulator took compliance with these obligations seriously as they were important measures to ensure well-functioning financial markets.
“Wholesale fund managers are required to comply with their obligations as a licensee. ASIC will take action when they fail to do so,” he said.
Ergo Capital has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
AUTHOR
Oksana Patron
Recommended for you
Marking off its first year of operation, Perth-based advice firm Leeuwin Wealth is now looking to strengthen its position in the WA market, targeting organic growth and a strong regional presence.
Financial services software firm Iress has unveiled a new business efficiency program with the aim of permanently lifting its profit margin as the business enters a leaner, growth-focused phase.
AUSIEX has revealed the top traded stocks for October, noting significant jumps in advised investor trading, while ETFs also reported higher activity.
The Financial Advice Association Australia has implored advisers to reevaluate their exposure to AML/CTF obligations ahead of new reforms that will expand their compliance requirements significantly.
