ASIC has cancelled 21 Australian credit licences for failing to be a member of the Australian Financial Complaints Authority (AFCA).
By law, Australian credit licence holders are required to be a member of AFCA. AFCA membership gives consumers access to a free, fair and independent dispute resolution scheme if a complaint is not properly considered or resolved by a credit licensee.
AFCA provides consumers and small businesses with an alternative to tribunals and courts to resolve complaints. ASIC said it worked with AFCA to identify financial services licensees and credit licensees that do not comply with their obligation to maintain their AFCA membership. Where an entity fails to comply, ASIC will take action to cancel or suspend their credit licence.
In the period April 1, 2022, to December 9, 2022, ASIC cancelled the following credit licences:
Meantime, ASIC also announced on December 16 that it had banned two Gold Coast-based financial service providers and cancelled the Australian financial services licence of National Advice Solutions Pty Ltd (National Advice Solutions). ASIC also banned the two Gold Coast-based responsible managers Gail Glasby and Paul Carcallas from providing financial services for a period of 10 years.
ASIC said it had cancelled the AFS licence of National Advice Solutions because it failed to ensure that financial services covered by the licence were provided efficiently, honestly and fairly. National Advice Solutions adopted a “layered advice” strategy whereby the licensee separated the advice into pre-determined topics, regardless of the client’s personal circumstances, goals or advice needs.
This strategy was found to actively impede financial advisers from complying with the financial services laws as clients were provided with expensive and templated advice that was not appropriate for their personal circumstances, ASIC said.
ASIC also cancelled the AFS licence of VIG Asset Management Pty Ltd (VIG) effective December 8.
The licence authorised VIG to deal in interests in managed investment schemes to wholesale clients.
ASIC cancelled the licence because receivers and managers were appointed to the property of VIG. Philip Campbell-Wilson and Matthew Byrnes of Grant Thornton were appointed as joint receivers and managers on June 25, 2020.
VIG can apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
