ASIC has suspended the AFS Licence Number 286219 of Focused Financial Advice Pty Ltd (FFA) until 19 December 2025, pending assessment and approval by ASIC of a key person variation to its Licence.
Ownership of the AFS Licence changed in 2023 following the sale of the shares in FFA and the key person and responsible manager also ceased at this time.
ASIC found that when the key person and responsible manager on the AFS Licence ceased, FFA failed to apply to ASIC to vary its AFS Licence within five days as required by its AFS Licence conditions.
As a result, FFA provided financial services for more than two years without a key person. By continuing to provide financial services after the cessation of the key person, FFA appears to have failed to comply with the obligation to maintain the competence to provide the financial services under the licence.
ASIC also found that FFA was unaware of the breach until ASIC made enquiries of the licensee.
The key person condition is an important regulatory safeguard. Key person conditions are imposed on an AFS Licence where ASIC considers a licensee is heavily dependent on the competence of one or two responsible managers in the provision of the financial services.
AFS Licensees must ensure they are always aware of the conditions on their licence and ensure they operate according to those conditions.
Background
The suspension of the Focused Financial Advice AFS license is part of ASIC's review of advice licensees that use lead generation services.
ASIC's action also reinforces its ongoing focus ensuring compliance by AFS Licensees with their licence conditions including when a Licensee has a change in ownership control (25-059MR).
More information
More information about Organisation Competence including key person conditions can be found in Regulatory Guide 105 AFS licensing: Organisational competence.
