ASIC Suspends AFS Licence of Ballast Financial Management Pty Ltd

ASIC has suspended the AFS License of Ballast Financial Management Pty Ltd. The license has been suspended until the 18th of December 2020.

October 14, 2020 | AtoZ Markets – The Australian Securities and Investments Commission (ASIC) announced this Wednesday that it has suspended the Australian financial services (AFS) license of Ballast Financial Management Pty, an Australian-based financial services provider.

Why ASIC suspended AFS license of Ballast Financial Management

Ballast Financial Management’s license (no. 233180) has been suspended until December 18, 2020, because the company had ceased to carry on a financial services business.

Specifically, the Aussie watchdog has suspended the license because: “Ballast ceased carrying on a financial services business when it was unable to obtain professional indemnity insurance to comply with its obligation to have adequate compensation arrangements.,” the statement said.

Furthermore, ASIC highlights that "Under s912B of the Corporations Act 2001, AFS licensees must have arrangements for compensating retail clients for losses they suffer as a result of the licensee or its representatives breaching their obligations in Chapter 7."

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According to the statement from the regulator, the suspension period will allow Ballast Financial Management to put in place adequate compensation arrangements, as well as to identify and appoint an appropriately qualified and experienced responsible manager following the resignation of its previous responsible manager.

If the company doesn’t demonstrate that it can comply with the AFS license obligations, then the authority will consider canceling the license at the end of the 10-week suspension period.

ASIC continues to improve market standards

The suspension of Ballast Financial Management’s licence is part of a bigger push from the Aussie regulator to improve the standards in the financial services industry. Over the past year, the authority has clamped down on companies that did not meet the obligations of the AFS license.

“ASIC expects AFS licensees to do all things necessary to meet their obligations under financial services law, comply with their licence conditions and ensure that they are able to provide financial services efficiently, honestly and fairly.”

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