ASIC has cancelled the Australian financial services (AFS) licence of Chambers Investment Planners after it failed to obtain professional indemnity insurance and entered voluntary administration.
Chambers was licensed to deal in, and provide advice on, a range of financial products, including life insurance, superannuation, managed funds, securities and margin lending, and to provide credit services in relation to credit contracts where it was not the credit provider.
Under the Corporations Act, an AFS licensee that provides a financial service to retail clients must have arrangements for compensating them for loss or damage suffered because of breaches of the relevant obligations under the Corporations Act by the licensee or its representatives.
Section 915B(3)(b) of the Corporations Act provides that ASIC may suspend or cancel an AFS licence held by a body corporate, by giving written notice to the body, if the body becomes an externally-administered body corporate.
ASIC also cancelled the Australian credit licence of Chambers after it ceased to engage in credit activities.
Chambers has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.
ASIC is also conducting enquiries into the conduct of the officers and representatives of Chambers, and will not comment further at this time.