ASIC has cancelled Capital Advisers Pty Ltd’s (Capital Advisers) Australian Financial Services (AFS) licence.

ASIC has also cancelled Capital Advisers’ Australian credit licence.

The cancellations follow ASIC concerns the group was unable to comply with its licence conditions and it subsequently going into voluntary administration.

ASIC’s concerns included Capital Advisers not having adequate compensation and insurance arrangements and failing to have measures in place to ensure their organisational competence.

Following ASIC’s concerns, Capital Advisers stopped offering financial services and appointed external administrators.

Under the Corporations Act, ASIC has the power to suspend or cancel an AFS licence, without holding a hearing, if the licensee is placed under external administration.

Following ASIC’s decision to cancel the licences, Capital Advisers was placed into liquidation.

Background

Capital Advisers previously traded under the name Freeman Fox Pty Ltd and its AFS licence authorised it to advise on a range of products to retail clients.

Capital Advisers went into external administration on 7 January 2014 and liquidation on 3 February 2014.