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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
