ASIC acts to remove AFS licence of two firms
The Australian Securities and Investments Commission (ASIC) has cancelled the AFS licence of two financial services groups, one of which had a director banned in October.
Quantum Funds Management had its Australian financial services licence suspended until 15 October, 2023 as it lacked the required professional indemnity insurance coverage.
Quantum director, Peter Geoffrey Gribble of Sydney, NSW, was banned in October for three years over refusal to pay determinations by the Australian Financial Complaints Authority (AFCA).
ASIC found that Gribble, as director of Qsmart and Quantum, approached AFCA determinations as if they were open to negotiation, including in some circumstances seeking to persuade complainants to accept less than the determination amounts.
The second order was a cancellation was for AFSL Group Pty as it had failed to lodge financial statements and audit reports for the 2020 and 2021 financial years and to maintain membership of AFCA.
Since ASIC’s surveillance, the firm had applied for reinstatement of its AFCA membership.
The two firms could apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
AUTHOR
Laura Dew
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this bloke got balls, but probably not of character to be an adviser. In saying that, this is why AFCA should have brought in an independent appeals board. For example, an adviser puts up to a $10k bond to get a decision re-assessed independently - refundable if AFCA decision is substantially overturned. This perhaps avoid situations like this.