ASIC removes licence conditions on clearing house

By Sarah Kendell
 — 1 minute read

A clearing house recently convicted for breaching client money provisions has had conditions removed on its licence by the corporate regulator.

In a statement, ASIC said it had removed additional licence conditions placed on Pershing Securities Australia (PSAL) as of 14 December 2020.

The conditions required the BNY Mellon subsidiary to appoint an independent expert to review to whether it had the ongoing ability to comply with the client money requirements of the Corporations Act.


"PSAL has fulfilled the requirements, including the obligation to provide attestations from a senior executive and non-executive board member to ASIC," the regulator said.

Accounting firm EY was engaged to prepare the independent report, and concluded that "based on our independent assessment, we identified no concerns regarding Pershing’s current and ongoing ability to comply with its obligations".

The conditions were placed on PSAL's licence after it self-reported breaches of the client money provisions of the Corporations Act.

The breaches led to PSAL pleading guilty to three charges in Downing Centre Local Court in May last year.


ASIC removes licence conditions on clearing house
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