Two companies lose AFSLs
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services licence (AFSL) of NSW-based Divitiarum Audax and suspended the AFSL of NSW-based Mackellar Financial Services.
Divitiarum Audax’s AFSL has been cancelled after a suspension in May 2017, for continued failure to lodge financial statements and auditor’s reports for four years.
It provided general financial product advice and held its AFSL since February 2004.
Mackellar’s AFSL has been suspended from 31 October until 30 April for failing to lodge financial statements and auditor’s reports for a period of two years. This was in breach of the firm’s legal obligations and licence conditions.
It held its AFSL since 2012, and according to ASIC, if it did not lodge the required documents by 30 April, 2018, ASIC would consider whether the licence should be cancelled.
The annual lodgement of audited accounts is an important part of licensees demonstrating it has enough financial resources to provide the services covered by its licence and to ensure its business complies with the Corporations Act.
ASIC deputy chair, Peter Kell said: “Licensees are required to lodge financial statements and auditor’s reports with ASIC to demonstrate their capacity to provide financial services”.
“Failure to comply with reporting obligations can be an indicator of a poor compliance culture. ASIC won’t hesitate to act against licensees who do not meet these important requirements.”
ASIC said it would continue to contact AFSLs who had not lodged financial statements and auditor’s reports and take appropriate action if they fail to lodge.
AUTHOR
Malavika Santhebennur
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
