ASIC takes action against two AFSL holders

ASIC suspended the AFSL of NSW-based Mackellar Financial Services from 31 October 2017 until 30 April 2018 for failing to lodge its financial statements and auditor’s reports for two years.

Failing to lodge the documents is a breach of both Mackellar’s legal obligations and licence conditions, ASIC said in a statement.

The regulator also cancelled to AFSL of Divitiarum Audax, a firm that provided clients with general financial product advice, for not lodging its financial statements or auditor’s reports for four years.

Divitiarum Audax’s licence was originally suspended in May 2017 for the breaches, however a separate note on the ASIC site from 22 December 2015 lists the company as insolvent, with the regulator proposing at the time to “deregister the company under section 601AB”.

Of the recent action taken against both AFSL holders, ASIC deputy chair Peter Kell said licensees are required to lodge their financial statements and auditor’s reports in order to prove to the regulator they have the capacity to provide financial services to clients.

“Failure to comply with reporting obligations can be an indicator of a poor compliance culture. ASIC won't hesitate to act against licensees who do not meet these important requirements,” he said.