The AFSL of Sydney-based financial services provider Australasia Wealth Services and Management Pty Ltd (AWSM) is cancelled as of 4 June 2019, ASIC said in a statement.
The cancellation followed a suspension of AWSM’s AFS licence from 25 March to 25 June 2019 to allow time for AWSM to demonstrate that it had complied with all of its general licensee obligations.
This licence suspension by ASIC was for AWSM’s failure to comply with its obligations as an AFS licence holder.
Further, AWSM breached its financial reporting and audit obligations, as well as the requirement to obtain membership of the Australian Financial Complaints Authority (AFCA).
However, at the end of the suspension period, information provided to ASIC by AWSM identified that AWSM would not be able to meet its obligations as an AFS licensee because of its financial position.
To minimise any adverse impact on clients, ASIC said AWSM is required to maintain their professional indemnity insurance and their dispute resolution system until 31 December 2019 despite the cancellation.
Good coverage of the details IFA. These issues identified are just a red flag towards a bull. I don’t see the problem here folks. 1) Joining the new complaints body was not that hard 2) lodging financials with ASIC is not that hard either and doing a cashflow statement is not that hard either. This is like being a financial planner and 1) not lodging your tax returns for 2017 plus 2) forgetting the date you’re being audited by your licensee. Pretty sure the TPB might ask a couple of questions.
Keystone cops on the beat again! ASIC, its great to see you targeting the smaller AFSL’s more so than the bigger institutionally owned ones, but I guess thats understandable isnt it, you are paid a large chunk of your fees from the bigger AFSL’s and they also dont have the financial resources to challenge you in court do they. Total hero’s !
small player new day same result. only small players, small Ars, small funds, or new entries. keep protecting the incumbents asic….and destroy new entrants or small professionals
ASIC AKA Flat track bullies.. where are the tough talking public servants with regard to the big corporate execs… Industry Super… SMSF Property Spruikers… just keep hitting the easy targets..
Well done ASIC. You got another one. You must be so proud of yourselves!
Can you please just remember to switch the lights off when you leave after you’ve shut down an entire industry through your ridiculous obsession to make it so complicated by regulation and compliance that it’s no longer viable to be an adviser and we all just chuck it in.
No respect for this corrupt, conflicted organisation whatsoever.
Many Licensees moving forward will continue to struggle meeting ASIC’s regulatory burdens as well as the increased costs associated with running a licence. This is going to be a more common occurrence.
Well we can look forward to seeing more of this how many aligned dealer groups would not be a member of the Australian Financial Complaints Authority, Fix one problem and create many more ,
Whats “non aligned”…. bad words!
How many AR’s?