ASIC cancels Wealth and Risk Management's AFSL

The corporate regulator has cancelled the AFSL of Wealth and Risk Management after it was “restrained from carrying on a financial services business” for 18 years following a case heard in the Federal Court of Australia.

The cancellation became effective from 14 May 2018, ASIC said in a statement.

Wealth and Risk Management and two related businesses were previously ordered to pay penalties of $7,150,000 for offering “cash payments to financially vulnerable clients” through an agreement that saw the client enter an advice agreement and pay fees out of their superannuation account.

“This process often resulted in a substantial erosion of the client's superannuation balances,” ASIC said at the time.