Wholesale service provider AFSL cancelled
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services licence (AFSL) of wholesale service provider, Ergo Capital, for failure to comply with its licensee obligations.
The cancellation of Ergo Capital’s licence came into force on 23 June, 2016.
ASIC said that the firm failed to comply with many of its obligations, including:
- Lodgement of its financial statements within the required timeframe;
- Financial resource requirements;
- Notifying ASIC of significant breaches within 10 days; and
- Maintaining the competence to provide financial services authorised under its AFS licence.
ASIC said it had recently cancelled the AFS licences of three other wholesale service providers, including Dunfo Capital, Narrow Lane Investments and TMK Index.
ASIC commissioner, Greg Tanzer, stressed that the regulator took compliance with these obligations seriously as they were important measures to ensure well-functioning financial markets.
“Wholesale fund managers are required to comply with their obligations as a licensee. ASIC will take action when they fail to do so,” he said.
Ergo Capital has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
AUTHOR
Oksana Patron
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
