The Australian Securities and Exchange Commission has cancelled the Australian financial services licence (AFSL) and Australian credit licence (ACL) of financial services provider and mortgage broker Direct My Wealth Pty Ltd.
The Australian watchdog explained the cancelation of the firm’s license with the failed to submit its 2020 audited financial accounts and its annual compliance certificate within 45 days of the annual compliance date, as required under its AFSL and ACL, respectively.
ASIC also noted that Direct My Wealth failed to maintain membership of the Australian Financial Complaints Authority (AFCA). The company is no longer carrying on a financial services business and has ceased to engage in credit activities.
The announcement said:
Under the Corporations Act 2001 and National Consumer Credit Protection Act 2009, ASIC may suspend or cancel an AFSL and ACL if the licensee is no longer providing financial services, ceases to engage in credit activities or fails to meet its legal obligations. This includes its obligations to lodge financial statements, auditor’s reports, and compliance certificates annually, and to hold AFCA membership.
Direct My Wealth first obtained AFSL on 13 January 2016 and an ACL on 14 January 2016. ASIC noted that the company may apply to the Administrative Appeals Tribunal (AAT) for a review of its decision.
Last week ASIC announced the commencement of civil penalty proceedings against the establishment formerly known as Equiti Financial Services Pty Ltd. Now known as DOD Bookkeeping Pty Ltd, the company finds itself facing proceedings in the Federal Court following allegations of regulatory breaches.
Earlier in May, the regulator banned Robert Patrick Marie, former managing director of Theta Asset Management Ltd (currently in liquidation), from providing any financial services for four years. The regulator also banned Marie from controlling financial services entities or being involved in any financial service business.
