ASIC has cancelled the Australian Financial Services (AFS) licence of Spectre Financial Group Australia Pty Ltd (Spectre), which had been suspended since May 2024.
ASIC cancelled the AFS licence because it found Spectre had failed to maintain the organisational competence to provide the financial services covered by its licence. This included failure by Spectre to appoint sufficient responsible managers with the appropriate knowledge and skills to provide general financial product advice and deal in derivatives and foreign exchange contracts.
ASIC was concerned that if the suspension was lifted and Spectre were to resume providing financial services, it may have put clients at an increased risk of financial loss.
Spectre has a right to apply to the Administrative Review Tribunal for a review of ASIC's decision.
Background
Spectre held AFS licence 501156 since 23 October 2018, which had authorised it to provide general financial product advice and deal in derivatives and foreign exchange contracts to retail and wholesale clients.
Spectre ceased carrying on a financial services business approximately three years ago and had not resumed providing financial services. During this period, Spectre also underwent three changes in ownership, as well as changes to its directors and responsible managers.
On 29 May 2024, ASIC suspended Spectre's AFS licence until 29 November 2024, on the basis that Spectre had ceased providing financial services. ASIC suspended the licence for six months to allow Spectre to take steps restore compliance with its obligations.
On 25 November 2024, ASIC suspended the licence for a further six-month period, until 30 May 2025.
