ASIC suspends AFSL of wealth management firm

On Friday, ASIC announced it had suspended the AFSL of financial services provider HJ Shortland & Co Wealth Management Pty Ltd for six months.

The corporate regulator said that the licence of the Alice Springs-based firm was suspended because it had ceased to carry on a financial services business.

According to ASIC, HJ Shortland & Co ceased to carry on a financial services business because its sole director, Harris Shortland, had been incarcerated.

Mr Shortland has lodged an appeal against his conviction, which is due to be heard later this year. HJ Shortland & Co has held an AFSL since 1 July 2008.

“ASIC acted to suspend HJ Shortland & Co’s AFS licence for six months to allow time for the appeal to be heard and determined and to ensure that the HJ Shortland & Co takes the necessary steps to meet the obligations of an AFS licensee before recommencing its financial services business,” the regulator said.

ASIC noted that the licensee may apply to the Administrative Appeals Tribunal for a review of its decision.

Earlier on Friday, ASIC confirmed it had banned the director and sole responsible manager for an Australian financial services licensee from performing the functions of an officer and a responsible manager of a financial services business for four years.

Chris Walters of Consolidated Mercantile Group (CMG) was found to have failed to monitor and oversee CMG’s business and to ensure that CMG complied with financial services laws.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.