Australian regulator ASIC has announced earlier today that it has suspended the Australian financial services (AFS) licence of Melbourne-based financial services provider Australian Golden Securities Ltd (formerly known as AFS Capital Securities Ltd).
ASIC found that Australian Golden Securities failed to:
- lodge its accounts and audit report as a licensee for the year ending 30 June 2018;
- lodge financial reports or compliance plan auditor reports for the registered managed investment schemes it operates for the year ending 30 June 2018;
- notify ASIC of changes to its external dispute resolution scheme (EDRS);
- maintain organisational competence or the resources required to provide the financial services covered by its licence;
- comply with the financial services laws.
Australian Golden Securities has already taken steps to address a number of concerns including notifying ASIC of changes to its EDRS and applying for a variation to the conditions of its AFS licence.
ASIC Commissioner Danielle Press commented on the news:
It is important to get the basics right. A licensee’s failure to lodge its financial and audit reports on time indicates a lack of commitment to compliance with the law.
ASIC will consider revoking the suspension if Australian Golden Securities is able to address ASIC’s concerns by the end of the suspension period, which is 21 May 2020. However, if by then the company cannot demonstrate that it is able to comply with its obligations, ASIC will consider cancelling or further suspending the licence.