Golden Financial Group, formerly known as NSG Services and National Sterling Financial Services, has had its licence revoked following a period of suspension from 18 March.
The company had failed to lodge its annual financial reports and did not have membership of an external dispute resolution system.
ASIC said in response to its enquiries, Golden Financial advised the regulator it had ceased the business and requested its AFSL cancellation.
In 2017, the Federal Court ordered the firm to pay a $1 million penalty for a breach of its best interests duty, introduced under the FOFA reforms. It was the first civil penalty imposed on an AFSL for a breach of the new regime.
The firm’s clients were reported to be commonly sold insurance and advised to roll over superannuation accounts that committed them to costly, unsuitable and unnecessary financial arrangements.
The court found the failures by then named NSG to ensure compliance among its representatives were systemic in nature.
Golden Financial has held the AFSL since 3 April 2008.
Geez ASIC couldn’t be further behind the pace of play here… They sold most of their business and moved the rest over to a new company which is a CAR or a licence. If they are hanging their hat on this…
This could also be said to be the same with industry union super funds “clients were reported to be commonly sold insurance and advised to roll over superannuation accounts that committed them to costly, unsuitable and unnecessary financial arrangements”