ASIC CANCELS AUSTRALIAN CREDIT LICENCE (ACL) FOR INSTANCES OF UNLICENSED SMSF ADVICE

ASIC has announced that it had cancelled the credit licence of Money Choice Pty Ltd ("Money Choice") for multiple reasons, including:

Money Choice was found to have advised some investors to set up a SMSF for the purpose of purchasing property when it was not licensed to provide such advice. 

ASIC appears to be taking a particular interest in standards of advice given to investors regarding the establishment of SMSFs and the investments within the SMSF.

To read the full ASIC media release, please click here.

Persons who:

should ensure that they are appropriately licensed to do so.  This includes having the appropriate licence authorisations.  For example, persons who provide financial product advice in relation to superannuation products require a specific licence authorisation.

Required Action

Ensure that your AFSL and/or your ACL covers all of the activities which you engage in.  The expressions "financial services" and "credit activity" have specific legal meanings.  Whether you want a licensee "health check" or you are looking at expanding the suite of services offered by your business, Licensee Solutions' team of industry experts can help you to apply for and obtain the licences and the licence authorisations which you require.  Please contact Kah Wai Hew on (08) 9381 6187.