ASIC cancels AFSL of non-aligned dealer group

The corporate regulator has cancelled the Australian financial services licence of an advice dealer group after it was unable to demonstrate that it had complied with all of its general licensee obligations.

The AFSL of Sydney-based financial services provider Australasia Wealth Services and Management Pty Ltd (AWSM) is cancelled as of 4 June 2019, ASIC said in a statement.

The cancellation followed a suspension of AWSM’s AFS licence from 25 March to 25 June 2019 to allow time for AWSM to demonstrate that it had complied with all of its general licensee obligations.

This licence suspension by ASIC was for AWSM’s failure to comply with its obligations as an AFS licence holder.

Further, AWSM breached its financial reporting and audit obligations, as well as the requirement to obtain membership of the Australian Financial Complaints Authority (AFCA).  

However, at the end of the suspension period, information provided to ASIC by AWSM identified that AWSM would not be able to meet its obligations as an AFS licensee because of its financial position. 

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To minimise any adverse impact on clients, ASIC said AWSM is required to maintain their professional indemnity insurance and their dispute resolution system until 31 December 2019 despite the cancellation.

ASIC cancels AFSL of non-aligned dealer group
Cancelled
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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].

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