ASIC suspends financial planning practice license for lack of PI


Perth-based financial advice firm, Ballast Financial Management has had its Australian Financial Services License (AFSL) suspended by the Australian Securities and Investments Commission (ASIC) for at least 10 weeks during which it can seek to obtain professional indemnity (PI) insurance.
ASIC said the Ballast AFSL had been suspended because it had ceased to carry on a financial services business because of its failure to obtain professional indemnity insurance.
The regulator said the 10-week suspension would give Ballast sufficient time to put in place adequate compensation arrangements.
“The suspension also provides Ballast an opportunity to identify and appoint an appropriately qualified and experienced responsible manager following the resignation of its previous responsible manage,” the ASIC announcement
It said that if Ballast was unable to demonstrate that it was in a position to recommence its financial services business by the end of the 10-week suspension, ASIC would consider cancelling its license.
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.