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ASIC has placed a three-month trading ban on a firm that failed to meet its reporting obligations.
The regulator announced yesterday that it had suspended the AFS licence of Protect Ensure until December 19.
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Protect Ensure offers a range of services including residential finance, commercial finance and financial planning, according to its website.
An ASIC investigation found that Protect Ensure “failed to lodge true and fair annual accounts together with an auditor’s report” by deadline and then “failed to report this significant breach”.
The penalty comes after ASIC recently announced a review into self-reporting of rule breaches and said it usually takes no action against firms that admit regulatory breaches.
ASIC said Protect Ensure would be unable to provide advice to new or existing clients while its licence is suspended.
In the meantime, the Brisbane-based firm will have to inform clients that its licence has been suspended and what that means.
Protect Ensure will also need to have its accounts updated and audited and demonstrate to ASIC that it has adequate financial resources to operate its licence.
ASIC deputy chairman Peter Kell said the regulator would not tolerate licensees that have funding issues that could lead to serious consequences for clients.
Protect Ensure has the right to appeal to the Administrative Appeals Tribunal.
This is the second time this year Protect Ensure has been punished. ASIC cancelled its Australian credit licence in July “following concerns it failed to continue to be a member of an external dispute resolution service”.
[Related: Car finance broker loses credit license]
