ASIC suspends Perth firm's licence

The corporate regulator has suspended the licence of a Perth advice provider who was unable to obtain adequate PI insurance.

In a statement, ASIC said it had suspended the licence of Perth-based advice firm Ballast Financial Management until 18 December.

The regulator said the licence was suspended because Ballast ceased carrying on a financial services business when it was unable to obtain professional indemnity insurance to comply with its obligation to have adequate compensation arrangements in place.

"Under s912B of the Corporations Act 2001, AFS licensees must have arrangements for compensating retail clients for losses they suffer as a result of the licensee or its representatives breaching their obligations in Chapter 7," ASIC said.


ASIC said the 10-week suspension would give the firm time to put in place adequate compensation arrangements, as well as appoint a new responsible manager after the resignation of the previous person in the role.

"If Ballast is unable to demonstrate that it is in a position to recommence its financial services business by the end of the 10-week suspension, ASIC will consider cancelling its licence," the regulator said.

ASIC said Ballast had held its licence since October 2003.

ASIC suspends Perth firm's licence
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