The corporate regulator has cancelled the Australian Financial Services Licence (AFSL) of a wholesale fund manager for failing to comply with its obligations.
Wholesale fund manager Ergo Capital Pty Ltd has had its AFSL cancelled by ASIC.
According to a statement from the corporate regulator, the fund manager failed to lodge financial statements; maintain financial resource requirements; notify ASIC of significant breaches within 10 days; and maintain the "competence" to provide the financial services authorised under its AFSL.
ASIC commissioner Greg Tanzer said the regulator takes compliance with AFSL obligations "very seriously".
"They are important to ensure we have efficient, well-functioning financial markets," Mr Tanzer said.
"Wholesale fund managers are required to comply with their obligations as a licensee. ASIC will take action when they fail to do so."
Ergo Capital's AFSL was cancelled with effect from 23 June 2016. The company has the right to appeal ASIC's cancellation of its licence via the Administrative Appeals Tribunal.
Wealth management relationships are under threat as clients look to switch providers driven by the impact of the royal commission. ...
S&P Dow Jones has announced a new addition to its global ESG index using enhanced ESG scores and granular data. ...
Investor confidence is on the rebound and the ASX hit a 12-year high on Monday. But it’s not all good news for the Australian economy. ...