ASIC suspends Sydney-based AFSL

The Australian Securities and Investments Commission (ASIC) has suspended the AFSL of Probis Financial Services after it was placed into voluntary administration on 17 July 2023.

The suspension includes a provision that requires Probis to continue as a member of the Australian Financial Complaints Authority (AFCA), with arrangements for compensating retail clients in place until the end of 30 October 2023.

On 17 July, Richard Albarran, Brent Kijurina, Cameron Shaw, and Aaron Dominish of Hall Chadwick were appointed as voluntary administrators of Probis.

Prior to suspension, Probis’ licence permitted it to:

• provide general advice and deal in specified financial products;
• make a market in foreign exchange contracts and derivatives;
• operate a registered managed investment scheme in financial assets; and
• provide custodial and depository services to retail and wholesale clients.

Probis marketed itself as being licensed to issue OTC derivative contracts (including margined FX and contract for difference contracts) to both retail and wholesale clients, and able to act as trustee for unregistered managed investment schemes for wholesale clients. It also said it was licensed to act as responsible entity for AAWM, a registered managed investment scheme, which could be accessed by retail investors.

Probis may apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.

The action follows the government announcing a consultation on the regulatory framework for managed investment schemes last week.

“This consultation paper has considered several areas with potential gaps in the regulatory framework for managed investment schemes that may detract from investor outcomes. However, there are opportunities to modernise and streamline the framework to ease compliance burdens without compromising the intent of any regulation or protections,” the consultation paper said.

“There may also be areas where the regulatory framework for managed investment schemes could be improved through closer alignment with the CCIV [corporate collective investment vehicle] regime.”