ASIC cancels SA company’s licence
South Australian company First Pacific Securities Australia (FPSA) has had its Australian financial services licence (AFSL) cancelled following an investigation by the Australian Securities and Investments Commission (ASIC).
ASIC found that FPSA, the responsible entity of registered managed investment scheme First Pacific Mortgage & Mezzanine Fund, which pooled investor funds then on lent to borrowers, had not complied with a number of its reporting and financial obligations.
Furthermore, ASIC determined there was reason to believe FPSA would not comply with it Corporation Act obligations as a financial services licensee in the future.
The investigation also discovered FPSA’s application for an AFSL reported a false balance sheet which made it appear to meet its financial obligations to obtain a licence.
The company has the right to appeal ASIC’s decision with the Administrative Appeals Tribunal.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.