ASIC has cancelled the Australian financial services (AFS) licence of Perth securities dealer Stellar Securities Pty Ltd (Stellar Securities) as it was unable to comply with its licence conditions.

Stellar Securities provided financial advice and dealt in financial products for retail and wholesale clients.

Following an ongoing monitoring of Stellar Securities, ASIC found Stellar Securities had failed to comply with conditions of its AFS licence including its financial requirement conditions.

At the same time Stellar Securities requested ASIC cancel their licence under section 915B(3)(d) of the Corporations Act 2001 (Corporations Act).

As part of the licence cancellation, ASIC imposed conditions that Stellar Securities for the next 12 months extend professional indemnity insurance and maintain its membership of an external dispute resolution service.

Consumers who have complaints about their dealings with Stellar Securities can contact the Financial Ombudsman Service on 1300 780 808.

ASIC’s inquiries into Stellar Securities are continuing. ASIC has no further comment at this time.

Background

Section 915B(3)(d) of the Corporations Act states ASIC may suspend or cancel an Australian financial services licence held by a body corporate, by giving written notice to the body, if the body lodges with ASIC an application for ASIC to do so, which is accompanied by any documents required by regulations.