ASIC cancels Tailormade Financial Strategies’ AFS licence

The Australian Securities & Investment Commission (ASIC) announced cancelling the Australian financial services (AFS) licence of New South Wales-based financial services provider Tailormade Financial Strategies Pty Ltd that took effect on 9 April 2020.

ASIC cancelled Tailormade’s licence because the company was in liquidation. The financial adviser is required to maintain its membership of the Australian Financial Complaints Authority for a minimum of 12 months and hold adequate professional indemnity insurance cover.

ASIC also revoked Ausfunds Management Limited’s AFS licence suspension. The licence was suspended on 8 April 2020 for breach of requirements as Ausfunds failed to maintain sufficient financial resources. The company raised the required funds to rectify the deficiency. As a response, ASIC lifted the suspension on 21 April 2020.

ASIC suspends AFS license

Responsible entities holding an AFS licence are obligated to have the minimum level of net tangible assets of $150,000. Ausfunds failed to maintain this level of financial resources over two consecutive financial reporting periods, despite reminders from its auditor about the financial requirements of its AFS licence.

ASIC has the power to suspend or cancel the AFS licence of a licensee who does not comply with the legal requirements or if the agency believes they are likely to contravene its legal obligations.

Ausfunds has sought a review of the Commission’s decision to suspend its AFS licence in the Administrative Appeals Tribunal, however a hearing date has not yet been set.

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