ASIC cancels Union Standard ASFL
The Australian Securities and Investments Commissions (ASIC) has cancelled the Australian financial services licence (AFSL) of Sydney-based retail over-the-counter (OTC) derivatives issuer Union Standard International Group.
Although the AFSL was cancelled, ASIC used its power under section 915H of Corporations Act to allow the liquidators to conduct certain activities under the licence until 18 December, 2020.
These activities included:
- Having in place a dispute resolution scheme and arrangements for compensating retail clients;
- To hold professional indemnity insurance; and
- To allow the termination of existing arrangement with current Union Standard clients.
The cancellation followed the appointment of Andrew Cummins and Peter Krejci of BRI Ferrier as liquidators on 3 September, 2020, by court order.
Union Standard operated under the brand USGFX and had its ASFL cancelled on 14 September, 2020, under section 915B of the Corporations Act 2001.
The licence was suspended on 15 July, 2020, as it had entered external administration.
The firm had 28 days from the date of cancellation to apply to the Administrative Appeals Tribunal for an appeal of ASIC’s decision.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
