ASIC suspends AFSL of insolvent product firm
The Australian Securities and Investments Commission (ASIC) has suspended the Australian financial services licence (AFSL) of Probis Financial Services Pty Limited, after it entered voluntary administration in July.
Probis advertises its services as a Sydney-based financial service provider authorised by ASIC to issue OTC derivative contracts (including Margined FX and Contract for Difference contracts) to both retail and wholesale clients.
Voluntary administrators from Hall Chadwick were appointed to handle Probis Financial Services’ affairs on 17 July.
The suspension also included a condition that the firm mandatorily continue its membership of the Australian Financial Complaints Authority (AFCA) to ensure ongoing arrangements for retail clients’ compensation continue until 30 October.
Probis’ licence, prior to its suspension, allowed it to:
- provide general advice and deal in specified financial products;
- make a market in foreign exchange contracts and derivatives;
- operate a registered managed investment scheme in financial assets; and
- provide custodial and depository services to retail and wholesale clients.
Misleading headline. This was not an advice firm. It was a product firm, that like most product firms, is able to provide general advice as a way of selling its products.
It’s another example of consumer harm due to regulatory failure, that professional advisers will be expected to foot the bill for.