ASIC cancels licence of underwriting firm

ASIC cancels licence of underwriting firm



The corporate regulator has announced it has cancelled the AFSL of a Sydney-based Group Underwriters & Managers (GUM) for failing to lodge financial statements and auditor reports.

GUM’s AFSL has been suspended since November 2016 for failing to meet its financial services licensee obligations for consecutive financial years ending 30 June 2013, 30 June 2014 and 30 June 2015, ASIC said in a statement.

The corporate regulator said the licence was further suspended on 15 February 2017 and again on 20 March 2017, giving GUM an opportunity to ensure the outstanding lodgements for 30 June 2013, 30 June 2014 and 30 June 2015 had been complied with.

After not lodging the financial statements and auditor reports for 30 June 2014 and 30 June 2015 during the suspension period, GUM’s licence was cancelled on 15 May 2017.

“Licensees are required to lodge financial statements and auditor reports with ASIC to demonstrate their capacity to provide financial services,” ASIC deputy chair Peter Kell said.

“Failure to comply with reporting obligations can be an indicator of a poor compliance culture. ASIC wont hesitate to act against licensees who do not meet these important requirements.”

GUM has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

GUM provides general financial product advice for general insurance and life insurance products, and has held its AFSL since June 2012.

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