ASIC has cancelled the Australian financial services (AFS) licence of Lotus Securities Ltd (AFS licence 306812) for failing to comply with a number of its key obligations as a financial services licensee, including:

• lodging its financial reports within the required timeframe;
• lodging compliance plan audits and financial reports for the managed investment schemes it operates within the required timeframe;
• complying with its financial resource requirements;
• complying with a Notice issued by ASIC;
• maintaining membership with an external dispute resolution scheme approved by ASIC; and
• notifying ASIC of significant breaches within 10 days.

ASIC Commissioner Greg Tanzer said, 'A responsible entity has an important gatekeeper role to ensure a managed investment scheme is operated in accordance with the Corporations Act. This is another example that demonstrates we will take action when there is a failure of a responsible entity to perform this gatekeeper role and non-compliance with these key obligations.'

Lotus Securities has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Background

Lotus Securities AFS licence was cancelled with effect from 26 September 2016.