Two AFSLs scratched, third suspended

27-Mar-2017

By Sarah Kendell

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The corporate regulator has cancelled the licences of two Australian financial services licensees for failing to lodge annual statements and maintain their membership of external dispute resolution (EDR) schemes.

In a statement released last week, ASIC said both Rebate Financial Services and Capstone Capital’s failure in their licensee obligations led to the cancellation of their licences, while the regulator had also suspended the licence of a third company, KABM, for failing to lodge financial statements for three consecutive years.

KABM’s licence would be suspended until 1 May and then cancelled if the group did not lodge the required paperwork, ASIC confirmed.

Commenting on the steps taken, ASIC deputy chairman Peter Kell emphasised that licensees must consistently comply with their obligations.

“The annual lodgement 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 lawfully,” he said.

“Membership of an EDR scheme is also an important requirement for licensees, and ASIC will not hesitate to act against those who fail to comply with their responsibilities.”

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