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
ASIC data shows the number of smaller AFSLs with less than $50 million in revenue has increased by 25 per cent in the past year, but the regulator believes they are still under reporting breaches.
Former financial adviser and Coalition backbencher Bert van Manen has introduced a bill in Parliament, building on Michelle Levy’s good advice duty and calling for SOAs to be scrapped.
Following its recent partnership with Otivo, Colonial First State has now announced an arrangement with Viridian Advisory to offer unadvised members with one-off, topic-based financial advice.
Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand.
