ASIC has cancelled the Australian financial services (AFS) licence of NSW-based Divitiarum Audax Pty Limited (Divitiarum Audax) and suspended the AFS licence of NSW-based Mackellar Financial Services Pty Ltd (Mackellar).

Mackellar's AFS licence has been suspended from 31 October 2017until 30 April 2018for failing to lodge financial statements and auditor's reports for a period of two years. This is in breach of both Mackellar's legal obligations and licence conditions.

Divitiarum Audax's AFS licence has been cancelled, following a suspension in May 2017, for continued failure to lodge financial statements and auditor's reports for a period of four years.

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

Background

Mackellar has held its AFS licence since July 2012. If Mackellar does not lodge the required documents by 30 April 2018, ASIC will consider whether the licence should be cancelled.

Divitiarum Audax provided general financial product advice and held its AFS licence since February 2004. ASIC suspended Divitriarum Audax's licence in May 2017. ASIC subsequently cancelled the licence after Divitiarum Audax failed to lodge the required documents.

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 licence and to conduct the business in compliance with the Corporations Act.

These actions are part of ASIC's ongoing efforts to improve standards across the financial services industry.

ASIC will continue to contact AFS licensees who have not financial statements and auditor's reports and take appropriate action if they fail to lodge.