Dunfo Capital – formerly known as GSM Financial Group – has had its licence suspended until 31 August 2015.
ASIC said it was concerned that Dunfo Capital failed to lodge financial statements and auditor reports for the 2013/2014 financial year within the required timeframe and failed to meet its net tangible asset requirements.
The regulator said it was also concerned Dunfo Capital failed to maintain competence to provide financial services, failed to comply with the key person condition on its licence and did not advise ASIC of these breaches within 10 days.
“The suspension of the [AFSL] is part of ASIC’s ongoing efforts to improve standards across the financial services industry, including the conduct of licensees that provide financial services to wholesale clients,” ASIC said.
“ASIC may revoke the suspension in the event Dunfo Capital meet their legal obligations and licence conditions.
“Dunfo Capital has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision,” ASIC said.
Commenting on the action taken, ASIC commissioner Greg Tanzer said the regulator strongly encourages all AFSL holders to “proactively report significant breaches” within 10 business days, as they are required to.
“The type of regulatory response that ASIC takes in relation to a breach notification will depend on the particular circumstances, including the steps taken by the licensee to identify and rectify the breach and the seriousness of the contravention and its consequences,” ASIC said.
