ASIC has cancelled the Australian Financial Services Licence and the Australian Credit Licence of a Melbourne-based business.
On 22 October 2018, the Federal Court found that Financial Circle breached numerous financial services laws and obligations, including engaging in unconscionable conduct and failing to act in its clients’ best interests. The court ordered Financial Circle that be permanently restrained from carrying on a financial services business, providing credit or entering into a credit contract as a credit provider.
The court also ordered Financial Circle to pay civil penalties totalling $8,980,000 and to pay ASIC’s costs.
Financial Circle’s licence cancellations became effective on 19 November 2018.
ASIC issued Financial Circle with AFSL No. 302222 on 9 August 2006, authorising it to carry on a financial services business, and ACL No. 302222 on 4 January 2011, authorising it to engage in credit activities other than as a credit provider.
As Financial Circle has ceased to carry on its financial services and credit business, ASIC cancelled its AFSL under s 915B(3)(a) of the Corporations Act 2001 (Cth) and its ACL under s 54 of the National Consumer Credit Protection Act 2009 (Cth).
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
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