ASIC revokes licence suspension after firm resolves shortcoming

ASIC revokes licence suspension after firm resolves shortcoming | Insurance Business

ASIC revokes licence suspension after firm resolves shortcoming

The Australian Securities & Investments Commission (ASIC) has revoked its suspension of the Australian financial services (AFS) licence of Ausfunds Management Limited after the Sydney-based responsible entity raised sufficient funds to rectify its net tangible assets deficiency.

According to ASIC, responsible entities with an AFS licence are required to meet the $150,000 minimum in net tangible assets.

Last month, Ausfunds’ licence was suspended for not having maintained the necessary level of financial resources over two consecutive financial reporting periods despite reminders from the company’s auditor.

Meanwhile, in a separate development, the AFS licence of Tailormade Financial Strategies Pty Ltd has been cancelled given the financial services provider’s liquidation. 

However, Tailormade is required to maintain its membership of the Australian Financial Complaints Authority for no less than 12 months and hold adequate professional indemnity insurance cover as part of the licence cancellation.