ASIC Suspends Marigold Falconer’s AFS License Over Missed Filing and Insurance

ASIC action based on the firm's lack of indemnity insurance and filing failures.

The Australian Securities and Investment Commission (ASIC) has today announced an 11-day suspension of the Australian Financial Services (AFS) license held by Marigold Falconer International Limited (Marigold Falconer), according to an update from the regulator which gives the firm until May 31, 2016, to meet certain requirements.

ASIC found that Marigold Falconer doesn’t have current professional indemnity insurance – which is required for firms – to cover claims if the company or any of its representatives’ breach financial services laws. The firm did previously have the needed insurance but it expired at the end of February this year.

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In addition, ASIC noted that the company hadn’t filed its audited financial statements with ASIC for its 2015 financial year, and past the October 31st, 2015-deadline required under the Corporations Act in Australia.

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Expired insurance and late filings

The company’s license – which is now suspended till May 31, 2016 – had allowed it provide services on financial products including derivatives, securities, and superannuation (retirement accounts), for retail and wholesale clients, as per the ASIC update.

The regulator has recently stepped up its efforts to enforce compliance for AFSL holders, as covered by Finance Magnates in recent articles.

ASIC also mentioned that it’s taking action in Federal Court against Ostrava Equities Pty Ltd which ceased as an authorised representative of Marigold Falconer on the 21st of last October.

This was after a court appointed a provisional liquidator to Ostrava Equities and its related entities after ASIC alleged that two individuals had committed numerous violations of the corporations legislation including unauthorised withdrawals of client funds and charging of fees by Ostrava Equities Pty Ltd in relation to self-directed retirement accounts.

 

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