ASIC has suspended the Australian financial services (AFS) licence of Assurance Cover Australia Pty Ltd (ACA) until 28 November 2022.
ACA operates an unregistered managed investment scheme, ‘Assurance Cover Australia’ (Scheme), which provides cover (through a discretionary mutual fund) for drivers in the peer-to-peer transport industry.
ASIC found that ACA did not have the required professional indemnity insurance coverage in place since 26 April 2019.
The licence suspension means ACA cannot provide financial services, including the issue of new interests in the Scheme, other than to existing clients.
ASIC will lift the suspension earlier if ACA obtains the required professional indemnity insurance coverage before the end of the suspension date. ASIC may consider further action if ACA continues to not comply with its obligations at the end of the suspension period.
ACA may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Assurance Cover Australia Pty Ltd has held AFS licence no. 448227 since 9 September 2014.
On 3 November 2022, ASIC extended the AFS licence suspension of Assurance Cover Australia Pty Ltd (ACA) until 3 April 2023. The extended suspension enables ACA to continue to provide financial services to existing clients while it seeks alternate strategies to put compliant compensation arrangements in place.