Tribunal vindicates ASIC decision to refuse limited AFSL

The Administrative Appeals Tribunal has supported ASIC’s decision to refuse a limited AFSL to an applicant for the third time in as many months.

The AAT affirmed ASIC’s decision to refuse an AFSL to S&A Chalhoub Nominees Pty Ltd on 4 February 2019, ASIC said in a statement.

It did so on the grounds that Chalhoub Nominees’ professional indemnity insurance was inadequate, the nominated responsible manager, Akram El-Fahkri, could not meet the knowledge requirements because he had not completed relevant training and the AAT could not be satisfied that Chalhoub Nominees would do all things necessary to ensure that the financial services proposed to be covered by the AFSL would be provided efficiently, honestly and fairly.

ASIC executive director for assessment and intelligence Warren Day said this is the third instance in as many months where the AAT has affirmed ASIC’s refusal to grant a limited AFS licence, following two similar decisions made by the AAT on 31 January 2019 and on 21 December 2018.

“The decision reinforces that applicants need to meet the standards imposed by the law and to provide ASIC with all relevant information requested to enable ASIC to make its decision whether a licence is to be granted,” Mr Day said.

“Failing to meet those standards means the licence application is unlikely to get very far. The deficiencies in this instance lead the tribunal to conclude it cannot be satisfied Chalhoub Nominees would provide the financial services sought efficiently, honestly and fairly.

Advertisement
Advertisement

“We stand by our assessment process and encourage applicants to ensure they fully understand and can demonstrate their ability to comply with the responsibilities that come with holding a limited licence.”

Tribunal vindicates ASIC decision to refuse limited AFSL
ASIC
ifa logo
Adrian Flores

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

from the web

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.