ASIC cancels Lotus Securities AFSL
The corporate regulator cancelled Lotus Securities' Australian financial services licence (AFSL) from 26 September after it failed to comply with several key obligations.
The Australian Securities and Investments Commission (ASIC) said Lotus Securities failed to:
- lodge its financial reports within the required timeframe;
- lodge compliance plan audits and financial reports for the managed investment schemes it operates within the required timeframe;
- comply with its financial resource requirements;
- comply with a notice issued by ASIC;
- maintain membership with an external dispute resolution scheme approved by ASIC; and
- notify ASIC of significant breaches within 10 days.
ASIC Commissioner, Greg Tanzer, said a responsible entity played an important gatekeeper role as they had to ensure that the managed investment scheme they operated was in accordance with the Corporations Act.
"This is another example that demonstrates we will take action when there is failure of a responsible entity to perform this gatekeeper role and non-compliance with these key obligations," said Tanzer.
The company has the right to appeal ASIC's decision to the Administrative Appeals Tribunal.
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
