Securities dealer scales down operations following ASIC review
A Queensland-based securities dealer has volunteered to wind back its operations after an Australian Securities and Investments Commission (ASIC) review found the company had breached conditions of its Australian financial services licence.
Prior to the regulator's findings, Clearing and Settlement Services (CSS) promoted a range of investment education and financial markets trading and modeling tools to investors via a network of authorised representatives across Queensland, New South Wales and Victoria.
In 2012, ASIC found the dealer had provided services outside those authorised under the AFSL. The regulator was particularly concerned in relation to the level of supervision and monitoring of CSS's corporate and individual authorised representatives.
ASIC also pointed to other issues pertaining to assessment and reporting processes; complaints assessment and handling; and the lodgement of statutory forms.
CSS has since revoked the authorisations for all but one of its representatives.
The former representatives included those who had moved from licencees against whom ASIC had taken action, including Romad Financial Services and International Securities and Derivatives Group.
"Licensees who sublet their licence must have in place adequate compliance and governance standards," ASIC deputy chairman Belinda Gibson said.
"This includes being responsible for the conduct of representatives they appoint."
Gibson said the monitoring of securities dealers is "very much on our radar" going forward.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
