ASIC has cancelled the Australian financial services licence (AFSL) and Australian credit licence (ACL) of Victoria-based Mortgage & General Financial Services Pty Ltd (Mortgage & General).
ASIC cancelled the AFSL and ACL because Mortgage & General failed to demonstrate that it had the competence and resources to provide financial services and credit activities as required under its licences.
Under the terms of both the AFSL and ACL, Mortgage & General was required to have a ‘key person’. However, following the death of its key person, Mortgage & General failed to appoint a new key person.
Mortgage & General also failed to lodge its accounts under its AFSL for the financial years ending 2017, 2018 and 2019. AFSL holders must lodge their financial statements and auditor’s reports annually to demonstrate that they have adequate financial resources to provide the services covered by their licence and to conduct their business lawfully.
Under the provisions of the Corporations Act 2001 and National Consumer Credit Protection Act 2009 respectively, ASIC may suspend or cancel an AFSL or an ACL if the licensee fails to meet their obligations.
Mortgage & General held an AFSL since 1 March 2004 and an ACL since 7 January 2011 (AFSL and ACL number 247413). It may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.