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Tuesday 4 October 2016

16-337MR ASIC cancels AFS licence of Lotus Securities

ASIC has cancelled the Australian financial services (AFS) licence of Lotus Securities Ltd (AFS licence 306812) for failing to comply with a number of its key obligations as a financial services licensee, including:

  • lodging its financial reports within the required timeframe;
  • lodging compliance plan audits and financial reports for the managed investment schemes it operates within the required timeframe;
  • complying with its financial resource requirements;
  • complying with a Notice issued by ASIC;
  • maintaining membership with an external dispute resolution scheme approved by ASIC; and
  • notifying ASIC of significant breaches within 10 days.

ASIC Commissioner Greg Tanzer said, 'A responsible entity has an important gatekeeper role to ensure a managed investment scheme is operated in accordance with the Corporations Act. This is another example that demonstrates we will take action when there is a failure of a responsible entity to perform this gatekeeper role and non-compliance with these key obligations.'

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

Background

Lotus Securities AFS licence was cancelled with effect from 26 September 2016.

Last updated: 30/03/2021 09:33