ASIC cancels 2 AFSLs for failure to pay industry funding levy

ASIC has cancelled the Australian Financial Services licences (AFSLs) of two advice firms over their failures to pay industry funding levies.

Downunder Insurance Services and Ipraxis, both based in Sydney, saw their AFSLs cancelled effective from 24 and 25 June, respectively.

The regulator said the action was taken after both firms failed to pay their industry funding levies for 12 months.

“Under s915B(3)(e) of the Corporations Act 2001 (Cth), ASIC may suspend or cancel an AFS licence held by a body if the body is liable to pay a levy imposed by the ASIC Supervisory Cost Recovery Levy Act 2017 and has not paid that amount (consisting of the levy, any late payment penalty and any shortfall penalty) in full at least 12 months after the due date for payment,” ASIC said.

Downunder had operated since February 2005 and was authorised to carry on a financial services business to deal in and provide financial product advice in relation to general insurance products to retail clients.

Meanwhile, Ipraxis had operated since 2008 and had a broader remit of being authorised to carry on a financial services business to deal in and provide financial product advice in relation to deposit and payment products, life products, interests in managed investment schemes, securities, retirement savings accounts and superannuation.

Both firms have the right to appeal to the Administrative Review Tribunal for a review of ASIC's decision.