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Wednesday 7 June 2017

17-171MR ASIC cancels a suspended Australian financial services licence after it failed to lodge financial statements and auditors reports

ASIC has cancelled the Australian financial services (AFS) licence of Sydney-based Group Underwriters & Managers Pty Ltd (GUM) for failing to lodge financial statements and auditor reports.  

GUM's AFS license has been suspended since November 2016 for failing to meet its financial services licensee obligations for consecutive years. After not lodging the financial statements and auditor reports during the suspension period, ASIC cancelled GUM's AFS licence on 15 May 2017. 

ASIC first suspended GUM's license on 16 November 2016, for a period of three months, for failing to lodge financial reports and audit reports for the financial years ended 30 June 2013, 30 June 2014 and 30 June 2015.  

The license was further suspended on  15 February 2017, and again on 20 March 2017, giving GUM an opportunity to address the outstanding lodgements for 30 June 2014 and 30 June 2015, as the 30 June 2013 lodgement had been complied with.   

Following GUM's failure to the lodge the outstanding financial statements and auditor reports for 30 June 2014 and 30 June 2015, its License was cancelled.  

ASIC Deputy Chair Peter Kell said, ‘Licensees are required to lodge financial statements and auditor reports 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.' 

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

Background 

GUM provides general financial product advice only for general insurance and life insurance products and has held its Australian financial services licence since June 2012.   

The annual lodgment of audited accounts is an important part of a licensee demonstrating it has adequate financial resources to provide the services covered by its license 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 cancellation of GUM's license is part of ASIC's ongoing efforts to improve standards across the financial services industry.

Last updated: 07/06/2017 09:39