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15-055MR ASIC suspends licence of wholesale service provider
ASIC has suspended the Australian Financial Services (AFS) Licence of Dunfo Capital Pty Ltd (formerly GSM Financial Group Pty Ltd) for failing to comply with a number of key obligations as a licensee.
Dunfo Capital was authorised under its AFS Licence to provide services including the operation of unregistered managed investment schemes and the provision of custodial or depository services to wholesale clients.
ASIC was concerned that Dunfo Capital:
- failed to lodge financial statements and auditor report for the financial year ended 30 June 2014 within the required timeframe
- failed to meet its Net Tangible Assets requirements
- failed to maintain the competence to provide financial services
- failed to comply with the key person condition on its AFS Licence
- did not advise ASIC of the above breaches within 10 business days
Dunfo Capital's AFS Licence was suspended until 31 August 2015.
The suspension of the AFS Licence is part of ASIC’s ongoing efforts to improve standards across the financial services industry, including, the conduct of licensees that provide financial services to wholesale clients.
ASIC may revoke the suspension in the event Dunfo Capital meet their legal obligations and licence conditions. Dunfo Capital has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
'We strongly encourage all licensees to proactively report significant breaches to ASIC within 10 business days, as they are obligated to do.' ASIC Commissioner Greg Tanzer said.
The type of regulatory response that ASIC takes in relation to a breach notification will depend on the particular circumstances, including, the steps taken by the licensee to identify and rectify the breach and the seriousness of the contravention and its consequences.