ASIC cancels licence of Financial Services Group Australia

It also permanently banned its responsible manager, Graham Holmes.

The Australian Securities and Investments Commission (ASIC) has cancelled the licence of Financial Services Group Australia Pty Ltd (FSGA).

ASIC also permanently banned FSGA’s responsible manager (RM) Graham Holmes, the commission announced in a statement on its website.

ASIC alleged that FSGA failed to take ‘reasonable’ steps in ensuring that two of its representatives provided financial product advice that was appropriate to the clients’ circumstances or in the clients’ self-interest.

FSGA also allegedly failed to have adequate financial and human resources available to provide the financial services covered by its licence.

ASIC also stated that FSGA failed to lodge its financial statements and auditor’s reports on time; lodge breach reports with ASIC; and comply with a condition on its licence that required FSGA to have total assets that exceeded total liabilities, in respect of financial years 2022 and 2023.

Manager permanently banned
ASIC also permanently banned FSGA’s RM Graham Holmes from providing any financial services.

Holmes is also banned from performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business.

ASIC alleges that Holmes accepted to be FSGA’s RA ‘on paper’ only and to receive RM fees when he was not fulfilling his duties as RM.

“ASIC therefore had reason to believe Mr Holmes is not a fit and proper person to participate in the financial services industry,” the commission stated on its website.