The Australian Securities and Investments Commission (ASIC) has cancelled the Australian Financial Services (AFS) license of Capital Advisers.
Following ASIC’s decision to cancel the licenses, Capital Advisers was placed into liquidation.
The Australian credit license of Capital Advisers has also been cancelled as they were unable to comply with ASIC’s license conditions and it subsequently going into voluntary administration.
ASIC said it cancelled the licenses as Capital Advisers do not have adequate compensation and insurance arrangements and failed to have measures in place to ensure their organizational competence.
Under the Corporations Act, ASIC has the power to suspend or cancel an AFS license, without holding a hearing, if the licensee is placed under external administration.