The Australian Securities and Investments Commission (ASIC) announced this Monday that it has canceled the Australian financial services (AFS) license of Australian Golden Securities Ltd (formerly AFS Capital Securities Ltd) effective from the 21st of May 2020.
The AFS license of Australian Golden Securities was previously suspended until the 21st of May this year. However, the license was canceled because the company hadn’t addressed the previous concerns of ASIC about its failure to meet its licensee obligations, the watchdog said.
In particular, the license was canceled because Australian Golden Securities 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 license, ASIC said in the statement.
“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,” the regulator said today.
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“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.”
Although the AFS license of the Melbourne-based financial services provider has been canceled, the company can continue limited operations until the 21st of January 2020, in order for the company to wind up its four registered managed investment schemes. The company must also maintain public indemnity insurance and AFCA membership for 12 months.
Back in 2017, ASIC banned Dr. Bingxing Hu, a responsible manager of Australian Golden Securities, from providing financial services for five years. However, following an appeal from Hu, the term was reduced to four and a half years.
ASIC cancels AFS license of Personal Risk Management
In addition to canceling the AFS license of Australian Golden Securities, ASIC announced this Monday that it has also canceled the AFS license of Personal Risk Management Pty Ltd, also effective from the 21st of May 2020.