ASIC Cancels AFS Licence of Pure Strategy, Bans Director

Australian regulator ASIC has announced the decision to cancel the AFS licence of Pure Strategy Pty Ltd. The company's sole director has also been banned from providing financial services.

The Australian Securities and Investments Commission (ASIC) on Monday announced the cancellation of the Australian financial services (AFS) licence of Pure Strategy Pty Ltd.

Why ASIC cancelled the AFS license of Pure Strategy?

ASIC cancelled the AFSL of Pure Strategy effective September 16, 2021, after it failed to comply with its general obligations.

The regulator said the firm failed to have adequate resources to carry out a financial services business, failed to maintain competence to provide the financial services under its licence, and failed to ensure its representatives complied with financial services laws. Pure Strategy also failed to comply with its licence condition to have a ‘key person’.

ASIC noted its licence would remain in effect for 12 months for the purposes of maintaining its Australian Financial Complaints Authority membership and its obligation to hold professional indemnity insurance cover.
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Ackerman banned from providing financial services

The corporate regulator has also banned Frederick Steven Ackerman of Pure Strategy from providing financial services for four years.

The Queensland-based financial adviser was found during his time as the sole director at Pure Strategy from May 22, 2019, to September 16, 2021, to have failed in acting in the best interest of his clients or provide them appropriate advice and at times he did not:

  • Identify his clients’ relevant objectives, financial situation, or needs;
  • Identify the subject matter of the advice sought;
  • Conduct a reasonable investigation and assessment of financial products;
  • Base all judgments on his client’s circumstances; or
  • Place his clients in a better position where they follow his advice.

ASIC also found that Ackerman was neither competent nor a fit and proper person to provide a financial service.

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