Australian regulator revokes suspension of Ausfunds’ AFS license
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).