ASIC cancels AFSL of financial services firm

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ASIC has cancelled the Australian financial services licence of Addwealth Financial Services in West Australia, after the firm failed to comply with its licence conditions. Addwealth FS had additional licence conditions imposed by ASIC in September last year following concerns over the suitability of advice to certain clients. ASIC was also concerned that Addwealth FS may have failed to adequate manage conflicts of interest.

Addwealth FS was found to have breached the additional conditions, which included failing to lodge independent external compliance reports. The firm requested its licence be cancelled by ASIC.

Addwealth FS provides advice on products and services including retirement planning and strategies, superannuation and rollovers (including strategies), self-managed superannuation, share market investments and managed funds. In 2011, the firm was recognised as a rising star in the WA Business News Rising Star Awards. The firm was recognised for demonstrated leadership, and for contribution to the environment, people, education and the community.

For the next 12 months, Addwealth FS must extend professional indemnity insurance and maintain its membership of an external dispute resolution service.