ASIC confirms end to Spectrum license
The virtual cessation of Freedom Insurance Group has had its corollary in an announcement today by the Australian Securities and Investments Commission (ASIC) that Spectrum Wealth Advisers has sought cancellation of its license meaning any remaining advisers will need to seek authorisation elsewhere.
The regulator has also revealed that it was considering suspending or cancelling Spectrum’s license before the company’s application was received.
The regulator has issued a statement advising clients of Spectrum Wealth Advisers Pty Ltd and financial advisers represented under Spectrum’s Australian financial services (AFS) licence that the company is seeking to cancel its licence and is no longer providing financial services.
The regulator said Spectrum had advised that it had stopped providing financial services and that therefore, advisers who were authorised through Spectrum’s AFS licence would need to become authorised by another AFS licensee before they can continue to provide financial advice to their clients.
“If you are a client of Spectrum and wish to find a new adviser, you should make sure you are dealing with an adviser authorised by an AFS licensee,” it said.
The ASIC announcement said that on 30 May 2019, Spectrum advised ASIC that it would seek to voluntarily cancel its AFS licence because of the departure of some key persons and responsible managers. This information was subsequently disclosed to the market by Spectrum’s parent entity, Freedom Insurance Group, on 31 May 2019.
The regulator said it had previously notified Spectrum that it was considering suspending or cancelling Spectrum’s AFS licence because of concerns that Spectrum had failed to meet some of its legal obligations.
Recommended for you
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
