This is ASIC, are you still there?
The Australian Securities and Investments Commission (ASIC) has driven home the need for financial services licensees to meet all their requirements by cancelling the licence of a company that it believes had ceased carrying on a financial services business.
The regulator announced this week that it had cancelled the licence of Hedge Securities and Investments Pty Ltd on the basis that it was not providing financial services. ASIC reached this decision because the company was no longer operating from its principal place of business as identified on its website and in ASIC records, it did not belong to the Financial Industry Complaints Scheme as represented on its website, its telephone number was not being answered by a person, and it had not met its obligations with respect to balance sheets and results since before the 2006 financial year.
Money Management checked the website of Hedge Securities and Investments and found the company was marketing itself as an experienced commodity and currency trader/broker specialising in capital raising and research.
The company listed client companies mainly within the mining sector, but also provided links to investment products provided by major players such as MLC, Colonial First State, Merrill Lynch, Asgard and Man Investments.
Announcing the cancellation of the licence, ASIC said licensees needed to be vigilant in ensuring they complied with the Corporations Act and the conditions of their licence.
The company has a right to appeal the cancellation of its licence to the Administrative Appeals Tribunal.
AUTHOR
Mike Taylor
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
