Australian regulator ASIC has informed earlier today that it has cancelled Melbourne based retail OTC derivative issuer, Berndale Capital Securities Pty Ltd’s (Berndale) Australian Financial Services (AFS) license.
The official reasons ASIC pointed out are that Berndale:
- failed to take reasonable steps to ensure that its representative complied with financial services laws;
- failed to have adequate financial and human resources;
- failed to maintain an appropriate internal dispute resolution system;
- failed to provide financial services efficiently, honestly and fairly;
- failed to comply with the client money reporting requirements;
- failed to lodge annual financial statements, and audit reports; and
is likely to contravene its general obligations as an AFS licensee.
ASIC also found Mr D’Amore:
- was involved in contraventions of financial services laws by Berndale;
- is not adequately trained, or is not competent, to provide financial services; and
- is likely to contravene a financial services law.
Cathie Armour, ASIC
AFS licensees must ensure that they comply with their reporting, competence and resourcing obligations. If an AFS licensee chooses to allow other entities to operate under its license, ASIC expects that the licensee will ensure that the representatives are not providing unlicensed financial services and are properly monitored. ASIC will take decisive regulatory action to address this type of misconduct to prevent investor harm’, ASIC Commissioner Cathie Armour said.
The complete announcement can be seen here.