Two firms see AFS licences cancelled

1 June 2020

Two financial services firms have had their licences cancelled by the Australian Securities and Investments Commission (ASIC) after failing to submit audited accounts and meet licensee obligations.

The first firm, Western Australia-based Personal Risk Management Pty Ltd, had its Australian financial services licence cancelled on 21 May, 2020 for failing to lodge its audited financial accounts.

Licensees were required by law to prepare a lodge a profit and loss statement, balance sheet and auditor’s report every year and Personal Risk Management had failed to do this in 2017, 2018 and 2019.

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The second firm was Australian Golden Securities, based in Melbourne and formerly known as AFS Capital Securities, which also had its licence cancelled on 21 May, 2020 for failing to meet its obligations.

The licence, which had previously been suspended, was cancelled as the firm had failed to lodge its financial and audit reports and address its failure to maintain adequate competence and capacity to provide the services covered by its licence.

Australian Golden Securities were able to “continue limited operations” until 21 January, 2021, to facilitate the winding up of its four managed investment schemes. It was also required to maintain public indemnity insurance and membership of the Australian Financial Complaints Authority (AFCA) for 12 months.

An Australian Golden Securities director, Dr Bingxing Hu, was currently banned by ASIC from providing financial services.

Both firms were able to apply to the Administrative Appeals Tribunal for a review of the decision.

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