ASIC suspends or cancels three AFSLs

The Australian Securities and Investments Commission (ASIC) has announced three license suspensions and cancellations – one of them for a firm offering wholesale financial planning advice – Sterling & Freeman Pty Ltd.

The regulator said it had suspended the license of Sterling & Freeman until 7 September because it had failed to lodge financial statements and audit opinions with ASIC for the 2019, 2020 and 2021 financial years.

It said it might consider further action if Sterling and free continued to not comply with its obligations at the end of the suspension period.

The regulator also said had suspended the license of Assurance Cover Australia until 28 November, noting that the company operates an unregistered managed investment scheme which provides cover through a discretionary mutual fund for drivers in the peer-to-peer transport industry.,

ASIC said it had found that the company did not have the required professional indemnity insurance coverage in place since 26 April, 2019.

It said the license suspension meant the company could not provide financial services including the issue of new interests in the scheme other than to existing clients.

“ASIC will lift the suspension earlier if ACA obtains the required professional indemnity insurance coverage before the end of the suspension date. ASIC may consider further action if ACA continues to not comply with its obligations at the end of the suspension period,” the announcement said.

The regulator also announced it had cancelled the license of Rizzak Capital because it had failed to comply with the key person condition of its AFSL and failed to lodge its financial statements and audit opinions for the financial years ended 30 June 2020 and 2021.