The Australian Securities and Investments Commission, or ASIC, has announced that it will take further actions against licensees that have failed to meet the obligations laid out for them.
AFS License Revoked
ASIC had announced that it had canceled the Australian Financial Services license (AFS) for Australian Golden Securities Ltd, a firm based in Melbourne. The cancellation of the firm’s license, the firm itself is formerly known as AFS Capital Securities Limited, was put in effect on the 21st of May, 2020.
Before the cancellation, Australian Golden Securities had the license canceled until the 21st of May, 2020, but the firm had failed to meet the obligations that the Australian watchdog had laid out for it.
Failure To Meet Obligations
ASIC went into detail, explaining that the call to cancel the license was made due to the firm itself failing to address the various concerns the regulator had made. According to ASIC, these concerns were related to the firm failing to meet the obligations of a licensee.
In particular, ASIC explained that the firm had been unable to file a financial and audit report to the regulator. Furthermore, it had failed to address its failure when it came to maintaining the needed capacity and adequate competence in providing financial services that its AFS license had covered.
Under the terms of this license cancellation, Australian Golden Securities will be allowed to continue limited operations until the 21st of January, 2021. This will be done in order to facilitate the winding up of the four registered managed investment schemes. Australian Golden Securities has further been mandated to maintain AFCA membership, as well as public indemnity insurance, for 12 more months.
A Bit Of History
Australian Golden Securities now holds the opportunity to apply for an Administrative Appeals Tribunal, or AAT, should they wish that the decision from ASIC be put under revision.
It was back in April of 2017 when ASIC had made its first move, banning Dr. Bingxing Hu, a responsible manager of Australian Golden Securities. The ban itself prohibited him from providing financial services for five whole years. In June of 2019, however, just after Hu made an application to ASIC, and the regulator subsequently varied the banning order.
The banning period was reduced from five years to four and a half years. In July of 2019, Hu promptly made an application to the AAT to review the variation decision for ASIC, with the application being withdrawn sometime later. As it stands now, Hu is still banned from providing any financial services within Australia.