Australia Strikes Investment Manager From Its Licensed List

Australian Securities & Investment Commission (ASIC) has cancelled the financial services licence of Sydney-based firm Investment Advisers Alliance.

Investment Advisers Alliance failed to lodge its financial statements and auditor’s reports for four consecutive years, ASIC said in a statement yesterday.

ASIC is empowered to suspend or cancel a licence if the licensee has not lodged its financial statements and auditor’s reports, a law held up by the Corporations Act 2001. A company must prove its adequate financial resources in order to keep an AFS licence. The firm had held its AFS licence since January 2013.

“The annual lodgement of financial statements and auditor's reports is an important part of a licensee demonstrating it has adequate financial resources to provide the services covered by its licence and to conduct the business lawfully,” said ASIC deputy chairman Peter Kell. “ASIC will act on failures to lodge financial statements, resulting in the suspension or cancellation of the AFS licence.”

The Commission stated that the cancellation of Investment Advisers Alliance AFS licence is part of ASIC's ongoing efforts to improve standards across the financial services industry.

Nick Kalikajaros 2017