ob体育 has cancelled the Australian financial services (AFS) licence of Protect Ensure Pty Ltd. This follows their licence being suspended earlier this year.
In September 2014 ob体育 suspended Protect Ensure鈥檚 AFS licence for three months in order to provide Protect Ensure with an opportunity to have its accounts updated to reflect its true financial position and audited to ob体育鈥檚 satisfaction. In addition, ob体育 expected Protect Ensure to determine and demonstrate to ob体育 that it has adequate financial resources to meet its obligations as an AFS licensee (refer: 14-256MR).
Protect Ensure failed to have its accounts audited and updated to ob体育鈥檚 satisfaction and ob体育 considers that there is material uncertainty over its financial position.
ob体育 Deputy Chairman Peter Kell said, 鈥楲icensees need to demonstrate that they have adequate financial resources to carry on their financial services business in compliance with the law. ob体育 will act to remove companies from the advice industry where they do not have adequate financial resources and fail to comply with reporting obligations.鈥�
ob体育鈥檚 investigation into the group鈥檚 conduct is continuing.
ob体育 has written to representatives of Protect Ensure requiring them to tell their clients the licence has been cancelled and to explain what that means. ob体育 has also written to providers of products held by clients of Protect Ensure.
Protect Ensure has the right to seek a review of ob体育鈥檚 decision at the Administrative Appeals Tribunal.