ASIC cancels several financial services licences

In a statement on Thursday, ASIC confirmed it has cancelled the Australian financial services licence of CMH Financial Group Pty Ltd (CMHFG).

The corporate regulator said that the licence has been cancelled because CMHFG failed to maintain external dispute resolution membership with the Australian Financial Complaints Authority.

Additionally, the firm failed to lodge its profit and loss statements and balance sheets for the 2019, 2020 and 2021 financial years.

“Under the Corporations Act, ASIC may suspend or cancel an AFS licence if a licensee fails to meet its general obligations under s912A. This includes the obligation to hold membership of a dispute resolution system and lodge financial statements annually with ASIC,” ASIC said.

The cancellation took effect on 25 August 2022 and ASIC noted that CMHFG may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.

The firm had held an Australian financial services licence since 19 June 2012.

In March 2016, ASIC accepted an enforceable undertaking from CMH Financial Group Pty Ltd and its sole director at the time, Daniel White, after surveillance found that it had failed to provide advice about SMSFs that was appropriate and in the best interests of clients.

“ASIC's surveillance identified examples where financial product advice to clients about SMSFs did not demonstrate that the advice provider had acted in the best interests of the client and did not comply with product replacement advice disclosure obligations,” the regulator said at the time.

Separately, the corporate regulator confirmed it has cancelled the AFS licence of James B Cogan.

“The licence was cancelled because Mr Cogan is no longer carrying on a financial services business,” ASIC said.

It explained that it “may cancel an AFS licence held by an individual if the person ceases to carry on a financial services business”.

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.