Only modest take-up on limited AFSL
There appears to have been only modest uptake of the accountants' limited licensing regime, according to the latest data revealed by the Australian Securities and Investments Commission (ASIC).
The data, released by ASIC commissioner, Greg Tanzer, during a CPA Australia SMSF conference this week revealed that the regulator had received 62 applications for a limited AFS licence with 27 applications having been approved.
Tanzer noted that 25 of these were from new applicants and two were variations (conversions) from existing AFS licences and that 15 of the approved applications were lodged by Public Practice Certificate members of CPA Australia.
He said that one application was likely to be refused on the grounds that the applicant failed to submit the prescribed documents and information required to support the application and that 25 applications had either been withdrawn by the applicant or returned to the applicant on the grounds that they are materially deficient in respect of the documentation and information which had been submitted.
Tanzer said two applicants had been offered draft limited AFS licences subject to the provision of some final outstanding documentation and information.
The ASIC commissioner said that a number of concerning trends had emerged in relation to the limited AFS licence inadequate or no evidence of RG 146 training course completion, inadequate coverage of professional indemnity insurance, limited or no knowledge of the restricted scope of the ‘class of product' advice authorisation, and financial statements lodged in the name of a trust and not the entity or individual applicant.
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.
