The Australian Securities and Investments Commission (ASIC) said Friday that it has cancelled the Australian Financial Services (AFS) licence of Financial Services Group Australia (FSGA), effective 7 June 2025, and permanently banned its Responsible Manager, Graham Holmes.
ASIC Cancels Financial Services Group Australia’s AFS Licence
ASIC said FSGA had failed to ensure that two of its representatives provided financial advice appropriate to clients’ circumstances or in their best interests.
The company also lacked adequate financial and human resources, failed to lodge financial statements and breach reports on time, and did not comply with licence conditions requiring its assets to exceed liabilities in both 2022 and 2023.
Although FSGA’s licence is cancelled, ASIC said the company must remain a member of the Australian Financial Complaints Authority (AFCA) and hold professional indemnity insurance until 4 June 2026. Clients with concerns are encouraged to lodge complaints with AFCA before that deadline.
Holmes, who served as the Responsible Manager “on paper only”, was found to have knowingly neglected his duties while receiving RM fees.
ASIC determined he is not a fit and proper person to operate in the financial services industry.
ASIC’s investigations into FSGA and its former director, Ferras Merhi, are ongoing, particularly in relation to the Shield Master Fund and First Guardian Master Fund. Merhi’s assets have been frozen as part of the regulator’s enforcement actions.
Both FSGA and Holmes have the right to apply for a review of the decision at the Administrative Review Tribunal.
