A Melbourne-based company has had its Australian financial services (AFS) licence cancelled by ASIC after it failed to meet its obligations.

On 18 November 2011, ASIC cancelled FP Investment Partners Pty Ltd’s (FPIP) AFS licence following an investigation and subsequent hearing which found:

• FPIP had failed to ensure that adequate arrangements for the management of conflicts of interest were in place.

• FPIP had failed to ensure that one of its previous authorised representatives, Mr Joshua David Fuoco, had complied with financial services laws. In particular, FPIP failed to take reasonable steps to ensure that Mr Fuoco, in the context of providing advice regarding investments in two unregistered managed investment schemes, had a reasonable basis for the advice given to his clients, and whether statements of additional advice provided by Mr Fuoco contained all required information.

• FPIP had failed to do all things necessary to ensure that the financial services business covered by its AFS licence was provided efficiently, honestly, and fairly.

The action to cancel FPIP’s AFS licence is part of ASIC’s focus to improve the standards of gatekeepers, specifically the obligations of financial services licensees to monitor authorised representatives and ensure adequate compliance measures are in place to address licence obligations.

FPIP has lodged an application with the Administrative Appeals Tribunal (AAT) for a stay and review of ASIC’s decision.

Background

ASIC recently banned Mr Rory Mor Macleod Deutsch of Box Hill North in Victoria, a responsible manager and key person on FPIP’s AFS licence since 13 September 2005 from providing financial services for four years (refer 11-244AD). Mr Deutsch has the right to appeal to the AAT for a review of ASIC’s decision.

[This media release was amended on 6 March 2020 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]

Editor's note:

On 23 January 2012, FPIP withdrew its application for review. The application was subsequently dismissed by the AAT.