ASIC has suspended the Australian financial services licence held by Marigold Falconer International Limited (Marigold Falconer) until 31 May 2016.

ASIC found that Marigold Falconer does not have current professional indemnity insurance to cover claims for breaches of financial services laws by Marigold Falconer or its representatives. The previous policy held by Marigold Falconer expired at the end of February 2016.

ASIC also found that Marigold Falconer has not lodged audited financial statements with ASIC for the 2015 financial year. The Corporations Act requires these documents to have been lodged before 31 October 2015.

ASIC will further consider any action in relation to Marigold Falconer's licence, having regard to whether it has obtained adequate professional indemnity insurance and lodged audited financial statements, by 31 May 2016.

Background

Marigold Falconer is authorised under its licence to provide financial product advice and deal in a number of classes of financial products, including derivatives, securities and superannuation, for retail and wholesale clients.

ASIC is currently taking action in the Federal Court against Ostrava Equities Pty Ltd (refer: 15-308MR), which ceased as an authorised representative of Marigold Falconer on 21 October 2015. 

Editor's note:

ASIC has further suspended the Australian financial services licence held by Marigold Falconer International Limited (Marigold Falconer) until 30 September 2016, subject to the following conditions:

• Marigold Falconer is to remove all Authorised Representatives from the licence by 5 July 2016;
• Marigold Falconer must engage a suitably qualified person to act as the responsible manager for the proposed authorisation enabling it trade in Spot Gold by 31 July 2016;
• Marigold Falconer to provide evidence to ASIC by 31 July 2016 that it will be able to obtain professional indemnity insurance for the licence variation sought;
• Marigold Falconer must lodge with ASIC an application for variation of the licence to authorise it to trade in Spot Gold by 31 July 2016.

If these conditions are not met by the required dates, ASIC will cancel the Australian financial services licence without further notice.