ASIC has adopted a practice of issuing combined media releases about administrative action. There is no relationship between the matters or the subjects in this media release, except that ASIC has taken administrative action.
ASIC cancels AFS licence of Personal Risk Management
ASIC has cancelled the Australian financial services (AFS) licence of Western Australia-based financial services provider, Personal Risk Management Pty Ltd (Personal Risk Management).
The cancellation took effect on 21 May 2020.
ASIC cancelled the licence because Personal Risk Management failed to lodge its audited financial accounts for the financial years ending 2017, 2018 and 2019.
AFS licensees are required by law to prepare and lodge a profit and loss statement, balance sheet and an auditor’s report annually. Licensees must do this to prove that they have the financial resources to provide the services covered by their licence and to conduct their business lawfully.
Under the Corporations Act 2001, ASIC may suspend or cancel an AFS licence if the licensee fails to meet their obligations.
Personal Risk Management held AFS licence number 247844 since 11 March 2004. It may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
ASIC cancels AFS licence of Australian Golden Securities Ltd
ASIC has cancelled the Australian financial services (AFS) licence of Melbourne-based financial services provider and responsible entity Australian Golden Securities Ltd (formerly AFS Capital Securities Ltd) effective 21 May 2020.
The licence was previously suspended until 21 May 2020 ().
ASIC cancelled the licence because Australian Golden Securities has not addressed ASIC’s concerns about its failure to meet its licensee obligations. Specifically, Australian Golden Securities has failed to:
- lodge its financial and audit reports, and
- address its failure to maintain adequate competence and capacity to provide the financial services covered by its AFS licence.
ASIC expects AFS licensees to do all things necessary to meet their obligations under financial services laws, comply with their licence conditions, and ensure that the financial services covered by their licence are provided efficiently, honestly and fairly.
Licensees must maintain the required competence and resources to provide the financial services covered by their licence and have robust compliance procedures in place to ensure ongoing compliance with their licensee obligations.
Under the Corporations Act, ASIC has the power to cancel or suspend an AFS licence if a licensee fails to meet its obligations.
Under the terms of the licence cancellation, Australian Golden Securities can continue limited operations until 21 January 2021 to facilitate the winding up of its four registered managed investment schemes. Australian Golden Securities is required to maintain public indemnity insurance and AFCA membership for 12 months.
Australian Golden Securities has held AFS licence no. 363925 since 16 November 2010. It may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
Background
ASIC banned Dr Bingxing Hu, a responsible manager of Australian Golden Securities, from providing financial services for a period of five years in April 2017 ().
On 28 June 2019, following Dr Hu making an application to ASIC, the banning order was varied by ASIC under s920D of the Corporations Act 2001 by reducing the banning period from five years to four and a half years. On 24 July 2019, Dr Hu applied to the AAT for review of the ASIC variation decision. The application for AAT review was subsequently withdrawn. Dr Hu remains banned from providing financial services.
