International firm stripped of AFSL

ASIC announced yesterday that Marigold Falconer International Limited has had its licence cancelled after it was unable to prove that it could obtain insurance cover for the financial advice services it was authorised to provide under its AFSL.

The previous professional indemnity insurance policy held by Marigold Falconer expired in February.

In May, ASIC suspended the firm's licence until 30 September 2016, subject to a number of conditions that failing to meet would result in licence cancellation.

One of those conditions included that Marigold Falconer would provide evidence to ASIC by 31 July 2016 that it would be able to secure professional indemnity insurance for a licence variation it proposed to seek, authorising the firm to trade in spot gold.

Marigold Falconer is an introducing broker of Hong Kong-based bullion dealer Marigold International Bullion Dealers Limited.

Ostrava Equities, an authorised representative of Marigold Falconer, was liquidated in 2015.