The Australian Securities and Investment Commission cancelled the AFSL of a responsible entity for failing to comply with a number of its key obligations as a financial services licensee.
The company, DD&D Securities, is the responsible entity for Dwyers Managed Investments, a mortgage scheme that operates in regional Victoria.
In particular, ASIC found that DD&D Securities failed to:
- maintain membership with an external dispute resolution scheme approved by ASIC;
- lodge its financial reports within the required timeframe;
- lodge compliance plan audits for the managed investment scheme it operates within the required timeframe; and
- notify ASIC of significant breaches within the required timeframe.
Commenting on the cancellation, ASIC commissioner John Price said, "A responsible entity needs to ensure a managed investment scheme is operated in accordance with the Corporations Act."
"As this matter demonstrates, ASIC will act where a responsible entity fails to lawfully perform this gatekeeper role and to comply with its obligations and licence conditions."
DD&D Securities has the right to appeal to the Administrative Appeals Tribunal for a review of the regulator's decision.