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Dealer group AFSL cancelled

The Australian Securities and Investments Commission (ASIC) has cancelled the licence of a Western Australian dealer group due to breaches of its licence conditions.

Addwealth Financial Services had additional conditions placed on its Australian Financial Services Licence (AFSL) in September 2012 following a surveillance of the business and concerns over the appropriateness of advice provided.

At the time, ASIC said the group would be subject to ongoing monitoring, but it has now become aware that Addwealth FS has breached its additional licence conditions.

ASIC said Addwealth FS has also requested ASIC cancel their licence, to which ASIC agreed.

Under the cancellation, ASIC has now imposed conditions that Addwealth FS for the next 12 months extend professional indemnity insurance and maintain its membership of an external dispute resolution service.

ASIC said it is writing to former Addwealth FS clients advising them of the circumstances of the licence cancellation and other matters they should be aware of.

The regulator said it is conducting enquiries into the conduct of individual officers of Addwealth FS and related companies. At this time ASIC had no further comment to make.