ASIC has cancelled the Australian Financial Services (AFS) licence of Sydney based company Core Insurance Pty Ltd for failing to lodge financial statements and auditor reports for a period of two years. This is in breach of both its legal obligations and licence conditions.
ASIC Deputy Chair Peter Kell said, ‘Licencees are required to lodge financial statements and auditor reports with ASIC to demonstrate their capacity to provide financial services.'
'Failure to comply with financial 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.'
The cancellation of Core Insurance's AFS licence is part of ASIC's ongoing efforts to improve standards across the financial services industry.
Core Insurance provides general advice in relation to general insurance products and has held its AFS licence since October 2012.
The annual lodgment of financial statements and an auditor's report is an important part of an AFS 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 financial statements and an auditor's report and take appropriate action if they continue to fail to lodge.