BREAKING: ASIC cancels advice firm's AFS

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ASIC has cancelled Capital Advisers Australian Financial Services licence and its credit licence.

The cancellations happened after ASIC became concerned the group was unable to comply with its licence conditions. The company subsequently went into voluntary administration.

ASIC’s concerns included Capital Advisers not having adequate compensation and insurance arrangements and failing to have measures in place to ensure their organisational competence.

After ASIC got in touch with them, Capital Advisers stopped offering financial services and appointed external administrators.

Under the Corporations Act, ASIC has the power to suspend or cancel an AFS licence, without holding a hearing, if the licensee is placed under external administration.

Following ASIC’s decision to cancel the licences, Capital Advisers was placed into liquidation.

Capital Advisers previously traded under the name Freeman Fox and its AFS licence authorised it to advise on a range of products to retail clients.

Capital Advisers went into external administration on 7 January 2014 and liquidation on 3 February 2014.
More to follow.