ASIC has cancelled the Australian financial services (AFS) licence of Chambers Investment Planners Pty Ltd (Chambers) after it failed to obtain professional indemnity insurance and entered voluntary administration.

ASIC also cancelled the Australian credit licence of Chambers after it ceased to engage in credit activities.

Chambers has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.

ASIC is also conducting enquiries into the conduct of the officers and representatives of Chambers. ASIC will not comment further at this time.

Background

Chambers was licensed to deal in, and provide advice on, a range of financial products, including life insurance, superannuation, managed funds, securities and margin lending, and to provide credit services in relation to credit contracts where it was not the credit provider.

Under section 912B of the Corporations Act 2001 (Corporations Act), an AFS licensee that provides a financial service to retail clients must have arrangements for compensating them for loss or damage suffered because of breaches of the relevant obligations under the Corporations Act by the licensee or its representatives. Corporations Regulation 7.6.02AAA provides that such arrangements are subject to the requirement that the licensee (unless exempt) holds adequate professional indemnity insurance cover.

Section 915B(3)(b) of the Corporations Act provides that ASIC may suspend or cancel an AFS licence held by a body corporate, by giving written notice to the body, if the body becomes an externally-administered body corporate.

Section 54(1)(b) of the National Consumer Credit Protection Act 2009 provides that ASIC may suspend or cancel a credit licence, by giving written notice, if the licensee does not engage, or ceases to engage, in credit activities.

For further information contact the administrator:

Matthew Donnelly and Gayle Dickerson
Administrators
Chambers Investment Planners Pty Ltd (Administrators Appointed)
c/- Grant Thornton
Level 1, 10 Kings Park Road
WEST PERTH WA 6005

Telephone: 08 9480 2000