Sydney AFSL sees licence cancellation
AFSLs are being reminded to take prompt action once a licence is granted as ASIC makes its latest licence cancellation of a Sydney firm.
The licence of Sug Ou Jeung, based in Lidcombe, Sydney, was cancelled on 3 June 2024.
ASIC said this was because ASIC became aware that Sug Ou Jeung had never used the licence and had not provided financial services under the licence within six months of the licence having been granted.
It reminded licence holders to act promptly to provide a financial service covered by their licence within six months of the licence being approved.
“Under the Corporations Act, ASIC may cancel an AFS licence held by an individual, by giving written notice to the individual, if the individual does not provide a financial service covered by the licence before the end of six months after the licence is granted.”
Unlike other cases, it was not stated that they had a right to apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
This is the sixth action taken against a Sydney firm since the start of the year. Last week, Burwood-based firm Aussie Wealth Super saw its licence cancelled after the corporate regulator received notification that liquidators had been appointed on 14 March 2024.
ASIC said the terms of the licence cancellation state that Aussie Wealth Super continues to be in effect as though the cancellation had not happened until 3 June 2025. This is for the purpose of having a dispute resolution system and concerning arrangements for compensation.
AUTHOR
Laura Dew
Recommended for you
As the year draws to a close, a new report has explored the key trends and areas of focus for financial advisers over the last 12 months.
Assured Support explores five tips to help financial advisers embed compliance into the heart of their business, with 2025 set to see further regulatory change.
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
