ASIC suspends Marigold AFSL


The Australian Securities and Investments Commission (ASIC) has suspended Marigold Falconer International's Australian financial services licence (AFSL) until May 31, 2016 after it found the company does not have a current professional indemnity insurance to claims for breaches of financial services.
ASIC has found that the previous policy held by Marigold Falconer expired at the end of February 2016 and that the company has not lodged audited financial statements for the 2015 financial year as required under the Corporations Act.
Marigold is authorised under its licence to provide financial product advice and deal in a number of classes of financial products that include derivatives, securities and superannuation.
ASIC has also informed that it will consider any action in relation to Marigold Falconer's licence, having regard whether it has obtained adequate professional indemnity insurance and lodged audited financial statements before May 31, 2016.
Additionally, the regulator is also currently taking action in the Federal Court against Ostrava Equities, which ceased as an authorised representative of Marigold Falconer on October 21, 2015.
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.