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Tuesday 5 May 2015

15-100MR ASIC cancels AFS licences for failing to lodge annual statements

ASIC has cancelled the Australian financial services (AFS) licences of four licensees that failed to lodge audited annual statements.

These cancellations are the result of ASIC's most recent proactive review of the conduct of 14 AFS licensees operating in the financial advice industry that had failed to lodge their audited annual statements.

ASIC first announced its review of AFS licences in July 2014 (refer: 14-172MR).

As part of this most recent review, in addition to the cancellations, ASIC has:

  • suspended one AFS licence for failing to lodge audited annual statements until the outstanding documents were lodged
  • achieved voluntary compliance by seven AFS licensees who have lodged all outstanding documents, and
  • prompted two entities to voluntarily cancel their AFS licences because they are no longer operating a financial services business.

The requirement to lodge annual audited accounts is an important one. Through it, the licensee can demonstrate it has adequate financial resources to provide the services covered by its AFS licence and to conduct its business in compliance with the Corporations Act. 

Deputy Chairman Peter Kell said, ‘In our experience, a licensee's failure to comply with reporting obligations can indicate a poor compliance culture.

'After our last review, ASIC warned licensees that their failure to lodge audited annual statements may result in the cancellation or suspension of their AFS licences and we are disappointed that some licensees do not seem to be heeding this message.

'Be clear, ASIC will continue to contact AFS licensees who have not lodged audited financial statements and take action where they fail to lodge these statements,' Mr Kell said.

Background

ASIC has cancelled four AFS licences and suspended one for failing to comply with the financial services laws by:

  • failing to lodge with ASIC its annual profit and loss statement and balance sheet, together with an auditor’s report for each outstanding year, and
  • failing to advise ASIC in writing, within 10 business days, of becoming aware of this significant breach.

 The cancelled and suspended licensees are:

  • Ken Hart Insurance Brokers Pty Ltd Pty Ltd (AFS Licence 253565)
  • McDouall Stuart Corporate Finance  Pty Limited (AFS Licence 282131)
  • Marshall Laurence Pty Ltd (AFS Licence 275471)
  • Green Stride Investment Management Pty Ltd (AFS Licence 408153), and
  • Navigate Funds Management Pty Ltd (suspended 23 December 2014 to 27 February 2015) (AFS Licence 299940).
Last updated: 30/03/2021 09:37