Non-aligned licensee Spectrum Wealth Advisers intends to close down its business immediately after it was unable to continue meeting a condition with its owner, Freedom Insurance Group.
Spectrum’s AFSL has a ‘key person’ requirement and due to the departure of a number of personnel who were performing duties on behalf of the company with respect to its financial services business, Spectrum is unable to continue to comply with this licence requirement, Freedom Insurance said in a statement to the ASX.
Spectrum has notified ASIC of this condition and is issuing notices today to its authorised representatives terminating their agreements and advising that no further business should be carried on under the agreements.
“Spectrum will support the orderly transition of all of its authorised representatives, and the related clients, to alternative Australian Financial Services licensees where requested,” Freedom Insurance said.
“The financial impact of the closure of the Spectrum business will be advised when Freedom release their accounts.”
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].
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