ASIC cancels Brisbane broker's AFSL

by Julia Corderoy18 Dec 2014
A Brisbane-based financial services company, which also offered mortgage broking services, has had their AFSL cancelled by ASIC.

Protect Ensure Ltd previously had their licence suspended for three months in September in order to have its accounts updated to reflect its true financial position and audited to ASIC’s satisfaction. In addition, ASIC expected Protect Ensure to determine and demonstrate that it has adequate financial resources to meet its obligations as an AFS licensee.

However, since failing to have its accounts audited and updated to ASIC’s satisfaction, the regulator considers that there is material uncertainty over its financial position and has cancelled its AFS licence.

“Licensees need to demonstrate that they have adequate financial resources to carry on their financial services business in compliance with the law. ASIC will act to remove companies from the advice industry where they do not have adequate financial resources and fail to comply with reporting obligations,” ASIC Deputy Chairman Peter Kell said.

ASIC has written to representatives of Protect Ensure requiring them to tell their clients the licence has been cancelled and to explain what that means. ASIC has also written to providers of products held by clients of Protect Ensure.

ASIC’s investigation into the group’s conduct is continuing.