ASIC takes action against licensees over AFCA membership
The corporate regulator has cancelled or suspended the licences of four financial services licensees who had not obtained an AFCA membership when they previously held external dispute membership with a previous scheme.
In a public update, ASIC said the Australian Financial Complaints Authority (AFCA) advised ASIC in November last year that 58 financial services licensees and 217 credit licensees, who previously held external dispute membership with one of the previous schemes, had not obtained AFCA membership and could be in breach of their licence conduct obligations.
ASIC said that following intervention it undertook with these potentially non-compliant financial and credit licensees, 50 financial services licensees subsequently obtained AFCA membership.
It also resulted in four financial services licensees voluntarily cancel their licences and the cancellation or suspension or four financial services licensees by ASIC.
ASIC commissioner Sean Hughes said ASIC has taken proactive measures to protect consumers from those few financial services licensees and credit licensees who were not complying with the obligations of their licence by being a member of AFCA.
“ASIC’s intervention means that consumers now have access to the independent dispute resolution scheme of AFCA if their complaints are not being properly considered by the financial services licensee or credit licensee,” Mr Hughes said.
ASIC said it will continue to work closely with AFCA to identify financial services licensees and credit licensees that are not complying with their obligations.
“Where entities fail to comply, ASIC will take formal action to cancel or suspend their licences,” it said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.