ASIC has cancelled the Australian financial services (AFS) licence of Protect Ensure Pty Ltd. This follows their licence being suspended earlier this year.

In September 2014 ASIC suspended Protect Ensure’s AFS licence for three months in order to provide Protect Ensure with an opportunity to have its accounts updated to reflect its true financial position and audited to ASIC’s satisfaction. In addition, ASIC expected Protect Ensure to determine and demonstrate to ASIC that it has adequate financial resources to meet its obligations as an AFS licensee (refer: 14-256MR).

Protect Ensure failed to have its accounts audited and updated to ASIC’s satisfaction and ASIC considers that there is material uncertainty over its financial position.

ASIC Deputy Chairman Peter Kell said, ‘Licensees need to demonstrate that they have adequate financial resources to carry on their financial services business in compliance with the law. ASIC will act to remove companies from the advice industry where they do not have adequate financial resources and fail to comply with reporting obligations.’

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

ASIC has written to representatives of Protect Ensure requiring them to tell their clients the licence has been cancelled and to explain what that means. ASIC has also written to providers of products held by clients of Protect Ensure.

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