ASIC has suspended the Australian financial services (AFS) licence of Protect Ensure Pty Ltd following concerns it has failed to comply with its compliance obligations.

The group provides financial planning services, including advice, with offices in Brisbane and Sydney.

Following a surveillance, ASIC found Protect Ensure failed to lodge true and fair annual accounts, together with an auditor’s report before 31 October of the relevant year, and failed to report this significant breach to ASIC.

The group also failed to ensure it had adequate financial resources to provide its services and to carry out supervisory arrangements of its representatives.

ASIC Deputy Chairman Peter Kell said, ‘ASIC will not tolerate licensees who have funding issues which could lead to serious consequences for clients.’

ASIC’s investigation into the group’s conduct is continuing.

Protect Ensure has the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.

Background

Protect Ensure’s licence has been suspended until 19 December 2014, effective from 23 September 2014. Protect Ensure is unable to provide advice to new or existing clients in this period.

Additionally, Protect Ensure will be required to have its accounts updated and audited to ASIC’s satisfaction and determine and demonstrate to ASIC that it has adequate financial resources to operate its licence.

ASIC has written to all representatives of Protect Ensure requiring them to tell their clients their licence has been suspended and what that means.

In July 2014, ASIC cancelled the group’s Australian credit licence following concerns it failed to continue to be a member of an external dispute resolution service.