AFS licence cancellation upheld by AAT
The Administrative Appeals Tribunal (AAT) has upheld a decision by the Australian Securities and Investments Commission (ASIC) to cancel the Australian financial services (AFS) licence of Olive Financial Markets.
Olive operated two Gold Coast-based businesses, one focused on superannuation and one on managed discretionary accounts (MDA), between 2013 and 2018 and had its AFSL cancelled in March 2020 for breaching legal obligations.
The MDA service was conducted through its authorised representative, Share Express, Markets Pty and Investor Centre Australia, which traded in contracts for difference (CFDs) over equities, commodities, indices and foreign exchange.
The second was a superannuation rollover business, conducted through authorised representatives Camori Pty Ltd, Ricarmo Pty Ltd and Paradise Financial Group Pty, that involved clients being cold-called and advised to roll over their super from their existing fund to be managed by Olive on either the HUB24 or Netwealth Investments platform.
The firm appealed the decision but it was upheld by the AAT who deemed the licence cancellation was appropriate.
The AAT noted the “serious and systemic” contraventions that occurred over an extended period, stating “cancellation is the only appropriate option given the seriousness of that conduct and the need to deter similar conduct elsewhere”.
It noted Olive did not comply with its obligations as an AFS licensee by failing to:
- Comply with financial services laws;
- Take reasonable steps to ensure that its representatives complied with financial services laws;
- Have available, adequate resources to provide the financial services covered by the licence and to carry out supervisory arrangements;
- Ensure its representatives were adequately trained and competent to provide the financial services covered by the licence;
- Have an appropriate internal dispute resolution mechanism; and
- Do all things necessary to ensure that the financial services covered by the licence are provided efficiently, honestly and fairly.
AUTHOR
Laura Dew
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