In a statement, ASIC said it had cancelled the licence of Squareknot Pty Ltd as of 6 May.
The regulator said it had made the cancellation after finding that “Squareknot did not meet the base level financial requirements of its licence”.
“Under the Corporations Act, an AFS licensee must comply with the conditions of its licence,” the regulator said.
“ASIC may suspend or cancel an AFS licence if a licensee does not comply with its licence conditions.”
The Sydney-based group had been licensed to provide general advice on and deal in securities for wholesale clients since December 2015.
ASIC said the licence cancellation was part of its efforts to “improve standards and maintain public confidence in the financial services industry”.
When I read the headline I thought this licence cancellation may have been due to giving inappropriate personal advice under cover of the “wholesale client” rule. And I assumed it would be one of the major institutions who have all ramped up this scam via their private banking operations. But no, it was just a minor player picked up on a licensing technicality.
Looks like the private banks are free to continue providing dodgy advice unhindered. Just like accountants, real estate agents, mortgage brokers, and super fund employees, who are all similarly ignored by regulators.