Breach notification failure sees AFSL’s licence suspended
A wholesale financial services provider has had its Australia Financial Services Licence (AFSL) suspended after failing to notify the Australian Securities and Investments Commission (ASIC) of a series of breaches of its licence.
ASIC announced the suspension of Dunfo Capital Pty Ltd's licence after it found the company — previously known as GSM Financial Group Pty Ltd — had failed to comply with a number of key obligations.
The suspension will remain in force until 31 August 2015, however ASIC said it may "revoke the suspension in the event Dunfo Capital meet their legal obligations and licence conditions" at an earlier date.
The regulator was concerned that Dunfo had:
- failed to lodge financial statements and auditor report for the financial year ended 30 June 2014 within the required timeframe;
- failed to meet its Net Tangible Assets requirements;
- failed to maintain the competence to provide financial services;
- failed to comply with the key person condition on its AFS Licence; and
- did not advise ASIC of the above breaches within 10 business days.
ASIC commissioner, Greg Tanzer, said the suspension was the result of the regulator's ongoing efforts to improve standards across the industry, including the conduct of licensees that provide financial services to wholesale clients.
"We strongly encourage all licensees to proactively report significant breaches to ASIC within 10 business days, as they are obliged to do," he said.
AUTHOR
Nicholas O'Donoghue
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
