ASIC cancels AFSL of Australian Fiduciaries

ASIC has cancelled the Australian financial services licence (AFSL) of Queensland-based Australian Fiduciaries, which is currently in liquidation.

This follows Australian Fiduciaries' inability to pay the amount determined by the Australian Financial Complaints Authority (AFCA).

The Compensation Scheme of Last Resort (CSLR) then made a payment of $150,000 for the AFCA determination.

"In making the cancellation order, ASIC has specified that Australian Fiduciaries is to maintain its membership with AFCA for a further 12 months, to 19 June 2027 so that complaints about Australian Fiduciaries can still be lodged with AFCA," ASIC said.

Last year, ASIC started an investigation against Australian Fiduciaries on concerns around the inadequate management of conflicts of interest, the ways investors were sold units in the schemes and how their funds were ultimately invested, as well as a lack of regular valuation checks of its schemes.

ASIC believes around 600 retail investors had invested approximately $160 million into managed investment schemes run by Australian Fiduciaries since February 2020, predominantly through their self-managed super funds (SMSFs).

Australian Fiduciaries had failed to lodge audited financial statements or audited compliance plan reports for its registered managed investment schemes for the 2024 financial year and for the first half of FY25. ASIC in an application to the Federal Court was seeking to preserve the assets of the scheme and obtain a clearer picture of the financial position of the firm.

Following a Federal Court hearing, receivers were appointed to two related entities of Australian Fiduciaries.