The Australian Securities and Investment Commission (ASIC) revealed today that it has cancelled the Australian financial services (AFS) licence of Queensland-based Advamode Financial Pty Ltd (Advamode), according to an official agency announcement.
The regulator’s decision took effect on Monday 20 June 2016, and it was made at Advamode’s request after the company was placed into liquidation on 4 May 2016.
Last year, ASIC imposed extra conditions on the company’s AFS licence, as the commission surveillance identified concerns regarding Advamode’s ability to ensure providing financial services efficiently, honestly and fairly, to demonstrate adequate financial resources were available to provide financial services and carry out supervisory arrangements, to have adequate arrangements for the management of conflicts of interest, and to demonstrate that adequate research and inquiries had been undertaken into financial products.
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The ASIC action has seen a compliance expert review Advamode’s business, including all policies and processes relevant to each regulatory concern, in addition to implementing any remedial actions recommended by the expert.
According to the official statement: “Clients of Advamode can still lodge a complaint about any advice received from representatives of Advamode. Advamode’s licence remains in effect for the purposes of External Dispute Resolution Scheme membership and client compensation purposes.”
Furthermore, the Australian watchdog urged Advamode’s customers to lodge any complaints they may have as soon as possible. It also encourages all investors to make sure they are dealing with a licensed entity, or authorized through an AFS holder from ASIC. This can be done by searching the professional registers on the ASIC website.