ASIC has cancelled the Australian financial services (AFS) licence of Assurance Cover Australia Pty Ltd (ACA), effective from 5 April 2023.
ACA operated an unregistered managed investment scheme, ‘Assurance Cover Australia’, which provided cover through a discretionary mutual fund for drivers in the peer-to-peer transport industry.
ASIC cancelled the AFS licence because ACA did not hold the required professional indemnity insurance cover since 26 April 2019.
The terms of the cancellation order allow ACA to provide financial services that are reasonably necessary for, or incidental to the winding up of the Scheme until 30 June 2023.
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.
ASIC originally suspended ACA’s AFS licence on 28 July 2022 because of ACA’s failure to hold the required PI cover (refer 22-218MR). ASIC then extended the suspension until 3 April 2023. The terms of the extended suspension permitted ACA to continue to provide financial services to existing clients while seeking alternate strategies to put compliant compensation arrangements in place (refer Editor’s Note in 22-218MR).