The corporate regulator has cancelled a firm’s AFSL after it failed to comply with a number of its key obligations as a financial services licensee.
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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Aug 2017ASIC permanently bans former AMP adviserBy Staff Reporter
- 18 Aug 2017IRESS announces first half resultsBy Jessica Yun
- 18 Aug 2017Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- 18 Aug 2017Adviser ethics certification launchedBy Staff Reporter
- 18 Aug 2017Banks evade FOFA, industry funds claimBy Larissa Waterson
- 16 Aug 2017UBS appoints head of wholesale distributionBy Staff Reporter
- view all