Australian regulator revokes suspension of Ausfunds’ AFS license

Maria Nikolova

ASIC revoked the AFS licence suspension of Ausfunds after the entity raised sufficient funds to rectify its net tangible assets deficiency.

The Australian Securities and Investments Commission (ASIC) today announces that it has revoked its suspension of the Australian financial services (AFS) licence of Sydney-based Ausfunds Management Limited.

On April 8, 2020, the regulator suspended Ausfunds’ AFS licence due to the company’s breach of its AFS licence by failing to maintain sufficient financial resources. In response to the suspension order, Ausfunds raised sufficient funds to rectify its net tangible assets deficiency. Given this, ASIC revoked the AFS licence suspension on April 21, 2020.

ASIC explains that responsible entities holding an AFS licence are required to meet the minimum level of net tangible assets of $150,000. Ausfunds had not maintained this level of financial resources over two consecutive financial reporting periods, despite reminders from its auditor about the financial requirements of its AFS licence.

Under the Corporations Act, ASIC has the power to suspend or cancel an AFS licence if a licensee does not comply with the law, or if ASIC has reason to believe a licensee is likely to contravene its legal obligations.

Ausfunds has sought a review of ASIC’s decision to suspend its AFS licence in the Administrative Appeals Tribunal.

Ausfunds has held AFS licence no. 440900 since 11 November 2013. It operates the Ausfunds Special Opportunities Fund managed investment scheme (ARSN 166 360 710).

Read this next

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.

blockdag

Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, USD, May 17 ,2024

Overall, both the Federal Reserve’s policy and the US dollar’s outlook are shrouded in some degree of uncertainty.

Market News, Tech and Fundamental, Technical Analysis

Ethereum Technical Analysis Report 17 May, 2024

Ethereum cryptocurrency can be expected to rise further toward the next resistance level 3200.00, which is the top of the previous impulse wave i.

Digital Assets

Hong Kong adopts digital yuan payments through Chinese banks

Hong Kong has launched a pilot program enabling digital yuan payments through major Chinese banks, marking the first instance of China’s digital currency project being deployed outside the mainland.

Retail FX

Saxo Bank increases client assets five-fold to $116 billion

Copenhagen-based broker Saxo Bank has achieved a major milestone, surpassing $116 billion (DKK 800 billion) in client assets.

Inside View

ISDA says US Basel III “endgame” to heighten market risk capital

ISDA further explained that, by requiring banks to hold additional capital that is misaligned with levels of risk, the proposal would significantly reduce capital market access for US end users and businesses, restrict the ability of businesses to hedge exposures to changes in commodity prices, and increase the cost of everyday consumer goods, including food and gasoline.

<