ASIC Cancels AFS Licence of Lotus Securities for Obligation Failures
- The financial services provider failed to fulfill its duties in accordance with ASIC rules and regulations.
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Lotus Securities for failing to comply with various Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term as a financial services licensee, including lodging its financial reports and compliance plan audits for the managed investment schemes it operates within the required timeframe.
Company Director Banned
ASIC removed Shaun Gregory Morgan, a director of the company in 2015. He was also the sole director of other Australian companies including Australian Capital Investment Group, Wolf Capital Investments Holdings, ACIG Mutual Fund and GTrade Securities. Morgan had pleaded previously pleaded guilty in a US court to bank fraud in 2009 and was sentenced to 60 months imprisonment.
In February 2015, ASIC issued a public warning not to deal with Morgan, as he was offering unlicensed financial services through the aforementioned websites by approaching ASX listed companies that were seeking to raise capital. He then requested an advance fee in Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term for facilitating the raising of capital via the use of corporate bonds.
Morgan was permanently banned from providing financial services in Australia as a result of his conviction in the United States in June 2015.
After cancelling the licence of the Lotus Securities today, ASIC Commissioner Greg Tanzer commented, 'A responsible entity has an important gatekeeper role to ensure a managed investment scheme is operated in accordance with the Corporations Act. This is another example that demonstrates we will take action when there is a failure of a responsible entity to perform this gatekeeper role and non-compliance with these key obligations.'
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Lotus Securities for failing to comply with various Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term as a financial services licensee, including lodging its financial reports and compliance plan audits for the managed investment schemes it operates within the required timeframe.
Company Director Banned
ASIC removed Shaun Gregory Morgan, a director of the company in 2015. He was also the sole director of other Australian companies including Australian Capital Investment Group, Wolf Capital Investments Holdings, ACIG Mutual Fund and GTrade Securities. Morgan had pleaded previously pleaded guilty in a US court to bank fraud in 2009 and was sentenced to 60 months imprisonment.
In February 2015, ASIC issued a public warning not to deal with Morgan, as he was offering unlicensed financial services through the aforementioned websites by approaching ASX listed companies that were seeking to raise capital. He then requested an advance fee in Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term for facilitating the raising of capital via the use of corporate bonds.
Morgan was permanently banned from providing financial services in Australia as a result of his conviction in the United States in June 2015.
After cancelling the licence of the Lotus Securities today, ASIC Commissioner Greg Tanzer commented, 'A responsible entity has an important gatekeeper role to ensure a managed investment scheme is operated in accordance with the Corporations Act. This is another example that demonstrates we will take action when there is a failure of a responsible entity to perform this gatekeeper role and non-compliance with these key obligations.'