ASIC suspended KP International’s AFS license until September 23, 2020. ASIC is concerned that KP International has not adequately addressed the systemic issues identified by the Financial Ombudsman Service.
October 23, 2019, | AtoZ Markets – KP International holds the AFS license no. 334191 since February 15, 2011. Australian regulator ASIC announced in a news earlier today. It had suspended Australia’s financial services license (AFS) of Sydney-based financial services provider KP International Group Australia Pty Ltd. (KP International) until September 23, 2020.
The suspension of KP International’s AFS license is part of ASIC’s ongoing efforts to improve standards in the financial services sector. KP International may request the Administrative Appeals Tribunal to review the decision of the ASICafs.
Reason of Suspension of KP International Group Licence
The license was suspended because the regulator was concerned. KP International had not adequately addressed the systemic issues identified by the Financial Ombudsman Service (FOS now AFCA). And KP’s professional indemnity insurance cover did not meet the minimum requirements.
Specifically, the FOS found that at least 23 KP International customers were affected by systemic issues. The ASIC determined that KP International failed to take all necessary measures. That is to ensure the financial services covered by its license were provided in an efficient, honest, and fair manner. The ASIC also concluded that KP International’s professional liability insurance contained exclusions. That made it inappropriate for the licensee’s activities and any liability arising from potential claims.
ASIC expects licensees to respond to AFCA concerns promptly and take corrective action. Licensees are supposed to have appropriate professional indemnity insurance coverage. It is to be able to compensate customers who suffer losses as a result of a breach of financial services obligations by the licensee or its representatives.
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