Sydney advice firm loses AFSL

A Sydney financial advice firm has had its AFSL cancelled by ASIC after an initial suspension period.

ASIC earlier put Australasia Wealth Services and Management in suspension saying the firm had failed to obtain membership of the Australian Financial Complaints Authority (AFCA) and had breached its financial reporting and audit obligations.

The suspension took effect at the end of March and ASIC was to decide whether to cancel the licence at the end of the suspension period.

This morning, the regulator said it cancelled AWSM's licence as of June 4.

"At the end of the suspension period information provided to ASIC by AWSM identified that AWSM would not be able to meet its obligations as an AFS licensee because of its financial position," ASIC said.

AWSM is required to maintain their professional indemnity insurance and their dispute resolution system until 31 December 2019 despite the cancellation.

It may apply to the Administrative Appeals Tribunal for a review of ASIC's decision, subject to timing.

Read more: ASICAWSMAdministrative Appeals TribunalAustralasia Wealth ServicesAustralian Financial Complaints Authority
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