ob体育

media release (23-107MR)

ob体育 cancels AFS licence of Assurance Cover Australia Pty Ltd

Published

ob体育 has cancelled the Australian financial services (AFS) licence of Assurance Cover Australia Pty Ltd (ACA), effective from 5 April 2023.

ACA operated an unregistered managed investment scheme, 鈥楢ssurance Cover Australia鈥�, which provided cover through a discretionary mutual fund for drivers in the peer-to-peer transport industry.

ob体育 cancelled the AFS licence because ACA did not hold the required professional indemnity insurance cover since 26 April 2019.

The terms of the cancellation order allow ACA to provide financial services that are reasonably necessary for, or incidental to the winding up of the Scheme until 30 June 2023.

ACA may apply to the Administrative Appeals Tribunal for a review of ob体育鈥檚 decision.

Background

Assurance Cover Australia Pty Ltd has held AFS licence no. 448227 since 9 September 2014.

ob体育 originally suspended ACA鈥檚 AFS licence on 28 July 2022 because of ACA鈥檚 failure to hold the required PI cover (refer 22-218MR). ob体育 then extended the suspension until 3 April 2023. The terms of the extended suspension permitted ACA to continue to provide financial services to existing clients while seeking alternate strategies to put compliant compensation arrangements in place (refer Editor鈥檚 Note in 22-218MR).