The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services licence of Arrumar Private Pty Ltd for failing to comply with licence conditions and financial services laws.
The cancellation took effect on Oct. 23.
According to a news release, ASIC found that Arrumar failed to meet its obligations to be a member of an external dispute resolution scheme and to lodge a true and fair profit and loss statement, balance sheet and auditor’s report for the financial year ending June 30, 2024.
Under section 915C(1) of the Corporations Act, ASIC said it may cancel an Australian financial services (AFS) licence for failing to comply with obligations as a licensee.
ASIC granted AFS licence number 510700 to Arrumar on Jan. 24, 2019. The company was authorised to carry on a financial services business to deal in and provide financial product advice in relation to deposit and payment products, debentures, government-issued stocks or bonds, life products, interests in managed investment schemes, managed discretionary account (MDA) services, securities, retirement savings accounts, margin lending, and superannuation for retail and wholesale clients.
The regulator noted that Arrumar has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
This year, ASIC has stepped up enforcement of financial services licensing rules, cancelling several licences for non-compliance with reporting and operational obligations. In August, the regulator cancelled the AFS licence of Lief Pty Ltd for failing to maintain membership with the Australian Financial Complaints Authority and for inadequate financial reporting.
Earlier, ASIC cancelled the licence of Velos Global Markets Pty Ltd after finding the company had ceased to carry on a financial services business.
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