ASIC cancels AFS licence for key person compliance failures

ASIC has suspended the Australian financial services (AFS) licence of Focused Financial Advice Pty Ltd (FFA) after the firm failed to replace the key person named on its licence following a change in ownership.

Departure of key person and failure to update licence

FFA’s appointed key person left the business in 2023. Despite this, FFA continued to operate without lodging the required notifications or seeking a variation to update its licence. Over the following two years, the firm provided financial services without an authorised individual responsible for the oversight of its AFS activities.

Suspension due to lack of organisational competence

ASIC has taken the view that FFA’s failure to maintain an appointed key person meant the business no longer met the organisational competence requirements attached to its licence. On this basis, ASIC has suspended the licence until 19 December 2025, unless a suitable replacement key person is appointed and approved earlier. During the suspension period, FFA is prohibited from providing financial services under its AFS licence.

Key considerations for AFS licensees

All AFS licensees should ensure their organisational competence is maintained at all times, particularly when key personnel depart or when ownership or management changes occur. Failure to do so can lead to significant regulatory action, including suspension or cancellation of an AFS licence.

If you require assistance with meeting your AFS obligations, including responsible manager appointments, licence variations or broader compliance matters, please contact Chris Mee at cmee@cnmlegal.com.au or call 07 3211 4010.