Additional Australian financial services (AFS) licence conditions imposed on Societe Generale Securities Australia Pty Ltd (SGSAPL) in June 2020 have been removed from 3 June 2021.
The additional licence conditions required SGSAPL to appoint an independent expert to assess and test the adequacy and effectiveness of SGSAPL’s controls, systems and processes to ensure it can comply with the client money requirements of the Corporations Act 2001 (the Act) (20-136MR).
SGSAPL has fulfilled the licence conditions’ requirements, including the obligation to provide attestations from a senior executive and a board member to ASIC.
ASIC has published a summary of the independent expert’s final report provided to ASIC under the conditions.
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Background
The additional conditions were imposed on SGSAPL following an investigation by ASIC into reports lodged by SGSAPL concerning breaches of the ‘client money’ provisions of the Act (20-252MR).
Client money provisions protect the interests of clients of AFS licensees by separating client money from money belonging to licensees. Client money held in a compliant account receives statutory protection in the event of the licensee’s insolvency.
SGSAPL is an ASX24 Trading Participant and ASX Clear (Futures) Participant. SGSAPL’s AFS licence authorises it to provide financial product advice, deal in financial products, make a market for financial products and provide custodial or depository services to retail and wholesale clients. The advice and dealing in financial services are in the areas of derivatives, foreign exchange contracts, securities and debentures, stocks or bonds.