ASIC strips firm of AFSL

ASIC found that Lotus Securities Ltd failed to: lodge its financial reports within the required timeframe; lodge compliance plan audits and financial reports for the managed investment schemes it operates within the required timeframe; comply with its financial resource requirements; comply with a Notice issued by ASIC; maintain membership with an external dispute resolution scheme approved by ASIC; and notify ASIC of significant breaches within 10 days.

ASIC Commissioner Greg Tanzer said, "A responsible entity has an important gatekeeper role to ensure a managed investment scheme is operated in accordance with the Corporations Act.

"This is another example that demonstrates we will take action when there is a failure of a responsible entity to perform this gatekeeper role and non-compliance with these key obligations."

Lotus Securities has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Lotus Securities AFS licence was cancelled with effect from 26 September 2016.

ASIC strips firm of AFSL

Reporter

Last Updated: 23 March 2020 Published: 04 October 2016