ASIC has cancelled the AFSL of east coast boutique advice firm Protect Ensure Pty Ltd, following a suspension earlier this year.
ASIC took the action after Protect Ensure failed to meet the conditions laid down by the regulator when a suspension was ordered in September, according to an ASIC statement.
Protect Ensure’s AFSL was previously suspended for three months to give the practice “an opportunity to have its accounts updated to reflect its true financial position and audited to ASIC’s satisfaction,” the statement said.
In addition, ASIC expected Protect Ensure to demonstrate it had adequate financial resources to meet its obligations as an AFS licensee.
“Protect Ensure failed to have its accounts audited and updated to ASIC’s satisfaction and ASIC considers that there is material uncertainty over its financial position,” the statement said.
ASIC deputy chairman Peter Kell said lienceees need to demonstrate they have adequate financial resources to carry on their business.
“ASIC will act to remove companies from the advice industry where they do not have adequate financial resources and fail to comply with reporting obligations,” he said.
The ASIC confirmed its investigation into the group’s conduct is continuing.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- 16 Nov 2018Retirees hit hardest by franking credit changes, says FSCBy Sarah Simpkins
- 16 Nov 2018Trust in advice more important than everBy Stephanie Aikins
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- view all