ASIC has announced a three month suspension of the Australian Financial Services licence of a Sydney-based insurance firm.

Group Underwriters & Managers (GUM) has seen its licence suspended for failing to lodge financial statements, auditor reports and auditor opinions for three years.

GUM provides general financial product advice for both general and life insurance products and has held its licence since June 2012.

“Licensees are required to lodge financial statements and auditor reports with ASIC to demonstrate their capacity to provide financial services,” ASIC deputy chair, Peter Kell, said.

“Failure to comply with reporting obligations can be an indicator of a poor compliance culture. ASIC won't hesitate to act against licensees who do not meet these important requirements.”

GUM’s licence has been suspended until 16 February 2017, the regulator said in a statement.

If the firm does not lodge the outstanding documents by this date, the regulator will “consider whether the licence should be cancelled,” the statement continued.

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