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Licence suspended over indemnity insurance failures

Licence suspended over indemnity insurance failures

Reporter
23 May 2016

ASIC has suspended an AFSL after it found the licensee did not have current professional indemnity insurance to cover breaches by its representatives, some of which provide financial advice on superannuation.

In a public statement on 20 May 2016, ASIC said it had suspended the AFSL of Marigold Falconer International Limited until 31 May 2016, after the previous professional indemnity insurance policy held by Marigold Falconer expired at the end of February 2016.

Marigold Falconer is authorised under the licence to provide financial product advice and deal in a number of classes of financial products, including derivatives, securities and superannuation, for retail and wholesale clients, according to ASIC.

In the statement, ASIC said that Marigold Falconer had not lodged audited financial statements with ASIC for the 2015 financial year.

"The Corporations Act requires these documents to have been lodged before 31 October 2015," ASIC said.

"ASIC will further consider any action in relation to Marigold Falconer's licence, having regard to whether it has obtained adequate professional indemnity insurance and lodged audited financial statements, by 31 May 2016."

The corporate regulator also noted that it is currently taking action in the Federal Court against Ostrava Equities Pty Ltd, a former authorised representative of Marigold Falconer.

Ostrava Equities ceased to be an authorised representative of Marigold Falconer on 21 October.

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Licence suspended over indemnity insurance failures
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