ASIC strips firm of AFSL
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.
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