On Friday, the Australian Securities and Investments Commission (ASIC) announced it has cancelled two Australian Financial Services (AFS) licences and 11 Australian credit licences.
ASIC Cracks Down: Cancels Two Financial Services Licences and 11 Credit Licences
The cancellations took place based on various compliance failures. These reportedly included non-membership in the Australian Financial Complaints Authority (AFCA), late lodgement of annual compliance certificates, failure to submit financial statements, and non-payment of industry funding levies.
ASIC explained that AFCA membership is mandatory for financial services and credit licence holders. The membership means consumers are able to gain access to independent dispute resolution when internal resolution processes fail.
ASIC said that it works with AFCA to determine AFS licence and credit licence holders that are not complying with their obligation to maintain AFCA membership.
The regulator revealed the two AFS licences were revoked for Colleen Hennequin and Aretean Pty Ltd.
The 11 credit licence cancellations occurred between June and September 2024. Some of the businesses that had their licences cancelled include George Frossinos, J F Consultancy and Investments Pty Ltd, Aspirepay, The Finmark Group, Fast Track Finance Group, Supreme Funding, and more.
ASIC’s cancellations highlight the regulator’s commitment to maintaining compliance within the financial services and credit sectors.
Entities that do not uphold their obligations risk losing their licences and ability to operate. The enforcement is in place to ensures consumers are protected and that financial services providers adhere to their legal responsibilities.
