ASIC cancels license of Australian Golden Securities
Australian Golden Securities has not addressed ASIC’s concerns about its failure to meet its licensee obligations, the regulator explains.
The Australian Securities and Investments Commission (ASIC) today unveiled more actions against licensees that have failed to meet their obligations.
ASIC says it has cancelled the Australian financial services (AFS) licence of Melbourne-based Australian Golden Securities Ltd, formerly known as AFS Capital Securities Ltd. The cancellation took effect on May 21, 2020.
The licence of Australian Golden Securities was previously suspended until May 21, 2020.
The regulator explains it made the call to cancel the licence because Australian Golden Securities has not addressed ASIC’s concerns about its failure to meet its licensee obligations. In particular, Australian Golden Securities has failed to:
- file its financial and audit reports, and
- address its failure to maintain adequate competence and capacity to provide the financial services covered by its AFS licence.
Under the terms of the licence cancellation, Australian Golden Securities can continue limited operations until January 21, 2021 to facilitate the winding up of its four registered managed investment schemes. Australian Golden Securities is required to maintain public indemnity insurance and AFCA membership for 12 months.
Australian Golden Securities may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
Let’s recall that, back in April 2017, ASIC banned Dr Bingxing Hu, a responsible manager of Australian Golden Securities, from providing financial services for a period of five years. In June 2019, following Dr Hu making an application to ASIC, the banning order was varied by ASIC by reducing the banning period from five years to four and a half years. In July 2019, Dr Hu applied to the AAT for review of the ASIC variation decision. The application for AAT review was subsequently withdrawn. Dr Hu remains banned from providing financial services.