ASIC cancels licences of BBY subsidiaries

ASIC has further suspended the licence of collapsed stockbroker BBY, while cancelling the AFSLs of its subsidiaries BBY Advisory and SmarTrader.

The corporate regulator has extended its suspension of BBY’s Australian financial services licence (AFSL) until 28 May 2019.

However, the AFSLs of BBY Advisory and SmarTrader – which were suspended for three years on 28 May 2015 – have now been cancelled.

BBY was placed in liquidation in May 2015 after the company was unable to repay a $6 million loan to St George Bank.

In its statement, ASIC said the suspension of the BBY Ltd had been extended for four reasons:

to ensure that clients of BBY continue to have access to an external dispute resolution scheme;
to ensure that clients of BBY continue to have access to the National Guarantee Fund;
to ensure that the receivers and administrators have the legal authority to transfer a client’s “holder identification number” to another market participant with instructions from the client or to convert a licensee-sponsored holding to an issuer-sponsored holding in accordance with the ASX Settlement Operating Rules; and
to ensure BBY continues to be required to have arrangements for compensating retail clients for loss or damages suffered as a result of breaches of the Corporations Act by the companies or their representatives.

BBY and its subsidiaries have the right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.