SMSFs central to AAT backing limited licence refusal
The Administrative Appeals Tribunal (AAT) has upheld the corporate regulator’s refusal to issue a limited licence to an SMSF service provider.
ASIC refused a limited licence to Superannuation Warehouse Australia, a decision the AAT backed in late January.
ASIC released a statement today on the matter. It said that the AAT’s decision took into account information referred to ASIC from the ATO about the audits of SMSFs undertaken by the sole director and nominated responsible manager of Superannuation Warehouse Australia, Johann Heinrich Preller.
ASIC also said the AAT found that Mr Preller failed to demonstrate an “adequate understanding” of the general obligations which would apply to a licensee.
Further, the AAT found that he failed to disclose matters that the AAT considered were materially relevant. This includes a failure to disclose past breaches of other laws to ASIC.
“These decisions reinforce the importance of providing full and frank disclosures to ASIC and the weight placed on an applicant’s past conduct in financial services or under other legislation in determining a licence application,” said ASIC executive director of assessment and intelligence Warren Day.
“Applicants, and anyone else involved in preparing and lodging applications with ASIC, are on notice that a failure to disclose all relevant information runs the risk of the application being refused,” he said.
“While some applicants may be relatively new to the licensing regime, we emphasise that granting a licence is a privilege and not a right and that making a false or misleading statement in a licence application may result in a criminal prosecution. Further, if we find out after we have granted a licence, we may cancel it, or seek other remedies.”
