ASIC cancels AFS licence for competency failures

ASIC has cancelled the Australian financial services (AFS) licence of Spectre Financial Group Australia Pty Ltd (Spectre) for failing to maintain organisational competence, which is a core obligation of an AFS licensee under the Corporations Act.

Spectre held an AFS licence since 23 October 2018 but ceased providing any financial services approximately three years ago. During this period, Spectre had three changes in ownership, as well as changes to its directors and responsible managers.

ASIC initially suspended Spectre’s AFS licence on 29 May 2024 for six months due to the company ceasing to provide financial services. The suspension was extended on 25 November 2024 for another six months. Ultimately, ASIC cancelled the licence after determining that Spectre lacked the necessary organisational competence, including a failure to appoint adequately skilled responsible managers. ASIC expressed concern that allowing Spectre to resume operations could expose clients to financial risk.

All AFS licensees should regularly review their organisational competence and governance arrangements especially during periods of ownership or management change. If you require assistance with maintaining compliance or assessing the adequacy of your internal systems and responsible manager appointments, please contact Chris Mee on cmee@cnmlegal.com.au or call 07 3211 4010.