The Australian Securities and Investments Commission (Asic) has suspended the Australian financial services licence of Perth-based financial advice provider Ballast Financial Management until 18 December 2020.
The licence was suspended because Ballast had ceased to carry on a financial services business.
Under the Corporations Act 2001, Asic may suspend or cancel an AFS licence without offering a hearing if the licensee ceases to carry on the financial services business.
Asic said that 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”.
Sufficient time
The 10-week suspension will give Ballast “sufficient time to put in place adequate compensation arrangements”.
Asic said: “The suspension also provides Ballast an opportunity to identify and appoint an appropriately qualified and experienced responsible manager following the resignation of its previous responsible manager.
“If Ballast is unable to demonstrate that it is in a position to recommence its financial services business by the end of the 10-week suspension, Asic will consider cancelling its licence.”
