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Wednesday 24 February 2016

16-045MR ASIC suspends AFS licence for failing to lodge financial statements

 

ASIC has suspended the Australian financial services (AFS) licence of Sydney-based Traders4Traders Pty Ltd (Traders4Traders) for failing to comply with a number of key obligations as a financial services licensee.

In particular, ASIC found that Traders4Traders:

  • failed to lodge financial statements, auditor reports and auditor opinions over consecutive years. This is in breach of both its legal obligations and licence conditions; and
  • failed to advise ASIC in writing, within 10 business days, of becoming aware of this significant breach.

Deputy Chair Peter Kell said, ‘Licencees are required to lodge financial statements with ASIC to demonstrate their capacity to provide financial services. Failure to comply with reporting obligations can be an indicator of a poor compliance culture. ASIC won't hesitate to act against licensees who do not meet these important requirements.'

ASIC has suspended Traders4Traders licence until the 21 April 2016. If they do not lodge the required documents by this date, ASIC will consider whether the licence should be cancelled.

Traders4Traders has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Background

Traders4Traders provides general financial product advice and is authorised to deal in foreign exchange contracts.  Their business focuses mainly on training and education in FX trading.

The annual lodgement of audited accounts is an important part of a licensee demonstrating it has adequate financial resources to provide the services covered by its licence and to conduct the business in compliance with the Corporations Act 2001.

ASIC will continue to contact AFS licensees who have not lodged audited financial statements and take appropriate action if they fail to lodge these statements.

The suspension of Traders4Traders licence is part of ASIC’s ongoing efforts to improve standards across the financial services industry.

Editor's note:

On 21 April 2016, ASIC lifted the three-month AFSL suspension after the company lodged all of its outstanding financial accounts.

Last updated: 24/05/2016 12:00