Australian regulator ASIC has announced earlier today that it has decided to cancel the AFS licences of the following two companies – CWS Mortgage Ltd and Australian Mutual Holdings Limited.
CWS operated the CWS Mortgage Fund ARSN 094 313 096 (Fund), a registered managed investment scheme and the licence cancellation took effect on 26 June 2019.
ASIC took this action because CWS had not held professional indemnity insurance since 15 September 2017.
Australian Mutual, on the other hand, was a responsible entity who operated a number of managed investment schemes. The company’s cancellation was effective from 5 July 2019.
The terms of the AFS licence cancellation allow Australian Mutual’s AFS licence to provide financial services which are reasonably necessary for, or incidental to, the winding up of the:
- Australian Pink Diamond Fund ARSN 120 329 240;
- Grange Capital Management Growth Plus Fund ARSN 120 328 823; and
- Accelerated Trend Hedge Fund ARSN 116 742 333 (AFS Licence Cancellation).
A key priority for ASIC is ensuring that responsible entities take their duty to act in the best interest of investors seriously. This duty of loyalty has been described as the ‘most fundamental’ rule of trust law. The community expects responsible entities to fully comply with the best interest duty and ASIC will take legal action to enforce this,’ ASIC Commissioner Danielle Press said.