ASIC strips several firms of AFS licence

On Friday, ASIC announced that it has suspended the AFS licence of ISG Financial Services Limited (ISG) until 30 September this year.

ISG is the responsible entity of two registered managed investment schemes, the ISG Real Estate Equity Fund and the ISG Private Access Fund.

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The corporate regulator found that ISG had failed to meet statutory audit and financial reporting lodgement obligations for itself and the two schemes.

Additionally, ASIC stated that ISG failed to have the required professional indemnity insurance coverage in place between 14 July 2020 and 21 June 2021. The firm has since obtained the necessary professional indemnity insurance.

“The suspension will be lifted earlier if ISG complies with its audit and financial reporting lodgement obligations. ASIC may consider further action if ISG has not complied with its obligations at the end of the suspension period,” the corporate regulator said.

Under the suspension, ISG cannot issue any new interests in the schemes but may continue to provide financial services that are necessary for, or incidental to, their day-to-day operation.

ISG can apply to the Administrative Appeals Tribunal for a review of the decision.

Separately on Friday, the AFS licence of Quattro Management was cancelled by ASIC on the basis that the firm has never provided financial services since the licence was issued in 2009.

ASIC said that the cancellation followed enquiries it made about Quattro Management’s failure to become a member of the Australian Financial Complaints Authority (AFCA).

The regulator noted that it has the power to cancel an AFS licence held by a body corporate without a hearing if the body does not provide a financial service covered by the licence before the end of six months after the licence has been granted.