Ballast Financial Management’s AFS licence cancelled

The Australian Securities and Investments Commission announced the suspension of the Australian financial services licence of the financial advice provider Ballast Financial Management Pty Ltd until 18 December 2020.

The company’s licence was canceled because Ballast ceased to carry on a financial services business. The financial advice provider was unable to obtain professional indemnity insurance to comply with its obligations to have adequate compensation arrangements.

Under the Corporations Act of 2001, AFS licensees must have arrangements for compensating retail clients for losses they suffer as a result of the licensee or its representatives breaching their obligations.

ASIC, AFS licence

The suspension will last for 10 weeks and give Ballas enough time to put in place adequate compensation arrangements.

This will also provide Ballast with an opportunity to identify and appoint an appropriately qualified and experienced responsible manager following the resignation of its previous responsible manager.

ASIC may consider cancelling Ballast’s licence if the company is not in a position to recommence its financial services business by the end of the 10-week suspension.

Read more:

Read Also: