The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence held by Beacon Wealth Pty Ltd after determining that the company had ceased to carry on a financial services business and had not taken the necessary steps to recommence operations.
ASIC’s decision follows the earlier suspension of Beacon Wealth’s AFS licence in April 2025. The suspension was intended to provide the company with an opportunity to seek variations needed to commence a proposed new business. However, Beacon Wealth did not progress its licence variation, failed to provide required information to ASIC and did not pay the applicable fees.
Regulatory basis for cancellation
ASIC cancelled Beacon Wealth’s licence under section 915B(3)(a) of the Corporations Act 2001. This provision permits ASIC to suspend or cancel an AFS licence where a licensee ceases to carry on a financial services business.
The regulator found that Beacon Wealth had ceased operating its financial services business on or prior to June 2024 and had not carried on such a business since that time. ASIC was satisfied that the licensee had not taken the steps necessary to recommence its financial services activities following the April 2025 suspension.
Consideration of proposed acquisition
ASIC also considered submissions relating to a proposed acquisition of the Beacon Wealth licence. The regulator concluded that the proposal did not involve the continuation of an existing financial services business, but rather represented a pathway to commence a new financial services business using the existing licence.
ASIC determined that this approach was not consistent with the financial services licensing regime. According to ASIC’s view, new financial services businesses are required to apply for a new AFS licence or become authorised by an existing licensee, rather than relying on the acquisition of a licence from an entity that has ceased operating its financial services business.
Review rights
Beacon Wealth may apply to the Administrative Review Tribunal for a review of ASIC’s decision to cancel its AFS licence.
