ASIC takes action against three licensees

ASIC has announced it cancelled the AFSLs of two financial services firms and suspended another for failing to lodge annual financial statements.

On Friday, the corporate watchdog said it cancelled the licenses of Rebate Financial Services and Capstone Capital Pty Ltd.

These firms failed to lodge annual financial statements and auditor’s reports. They also failed to maintain membership with an external dispute resolution scheme approved by ASIC, the regulator said.

ASIC also suspended the AFSL of KABM Pty Ltd for failing to lodge financial statements and auditor’s reports for three consecutive years.

The licence is suspended until 1 May 2017. If these reports are not lodged by this date, ASIC said it will consider cancelling the licence.

ASIC deputy chairman Peter Kell said, “The annual lodgement of audited accounts is an important part of a licensee demonstrating it has adequate financial resources to provide the services covered by its licence and to conduct the business lawfully.

“Membership of an EDR scheme is also an important requirement for licensees and ASIC will not hesitate to act against those who fail to comply with their responsibilities.”

The cancellation of Capstone Capital and Rebate Financial Services' AFSLs is part of ASIC's ongoing efforts to improve standards across the financial services industry, the regulator said.

**Update**

Capstone Capital should not be confused with Capstone Financial Planning. The two companies are completely separate and unrelated. 

 

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