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16-370MR ASIC suspends AFS licence for failing to lodge financial statements
ASIC suspended the Australian financial services (AFS) licence of Parramatta-based Rural & General Insurance Broking Pty Limited (RGIB) for failing to lodge financial statements, auditor's reports and auditor's opinions for the financial years ending 30 June 2014 and 30 June 2015.
This is in breach of both its legal obligations under the Corporations Act and its licence conditions.
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 RGIB's licence until 5 April 2017. If they do not lodge the required documents by this date, ASIC will consider whether the licence should be cancelled.
RGIB has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
RGIB provides general financial product advice and is authorised to deal in general insurance products.
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 its 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 RGIB's licence is part of ASIC’s ongoing efforts to improve standards across the financial services industry.
Earlier this year, ASIC permanently banned the former director of RGIB, Timothy Charles Pratten of New South Wales, from providing financial services and from engaging in credit activities (16-254MR).