ASIC Suspends AFS Licence of Australian Golden Securities Ltd

The Australian regulator ASIC announced earlier today that it had suspended the AFS licence of Australian Golden Securities Ltd (formerly AFS Capital Securities Ltd).

10 December, 2019 | AtoZ Markets – Australian Golden Securities holds the AFS licence no. 363925 since November 16, 2010. The ASIC banned former director, Dr. Bingxing Hu, from providing financial services for five years in April 2017. Mr. Hu has also been the managing director of the Australian Golden Securities until April 18, 2017. On June 28, 2019, the ASIC amended the prohibition order by reducing the blackout period from five to four and a half years. On July 24, 2019, Mr. Hu asked the AAT to review the ASIC amendment decision. The request has not been heard yet.

ASIC Suspends AFS Licence of Australian Golden Securities Ltd

ASIC has suspended AFS licence of the Melbourne financial services provider Australian Golden Securities Ltd. until May 21, 2020. The license has been suspended because ASIC is concerned that the Australian Golden Securities is not meeting its obligations as an AFS licencee.

The ASIC found that the Australian Golden Securities failed:

  • File its accounts and audit report as a licencee for the fiscal year ending June 30, 2018;
  • File financial statements or audit reports of the compliance plan for the registered investment plans. It manages for the fiscal year ending June 30, 2018;
  • Notify ASIC of the changes to its External Dispute Resolution System (EDRS);
  • Maintain the organizational competence or resources necessary to provide the financial services covered by its licence;
  • Comply with the financial services laws;

Upon receipt of the ASIC Notice of Hearing, Australian Golden Securities took steps to address several concerns. That also includes notifying ASIC of changes to its EDRS and requesting an amendment to the terms and conditions of its AFS licence. ASIC is currently reviewing the application.

Australian Golden Securities has not yet filed its financial reporting and audit obligations. The suspension period will provide it with the opportunity to file outstanding accounts, financial reports, and audit reports. Also, it can take all necessary steps to address ASIC’s concerns regarding its AFS licence obligations.

Danielle Press, ASIC Commissioner, said, “It’s important to understand the basics right. The failure of a licencee to file financial and audit reports in time indicates a lack of commitment to comply with the law. “

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ASIC Will Reconsider the Suspension

ASIC will consider withdrawing the suspension if the Australian Golden Securities can address ASIC’s concerns by the end of the suspension period. However, at the end of the suspension, the Australian Golden Securities can demonstrate that it can comply with its obligations. Otherwise, ASIC will consider canceling or further suspending the licence.

ASIC expects AFS licencees to do all that is necessary to meet their obligations to comply with the terms of their licence. Also, it ensures that financial services covered by their licence are provided in an efficient, honest, and fair manner.

The suspension of the Australian Golden Securities licence is part of ASIC’s ongoing efforts to improve standards in the financial services sector. However, Australian Golden Securities may request the Administrative Appeals Tribunal (AAT) to review the ASIC decision.

Our AtoZMarkets’ PR team has contacted Australian Golden Securities Ltd. about the AFS licence suspension case. We will let you know as soon as we received any quotes/comments from them. 

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