ASIC has cancelled the Australian financial services (AFS) licence of The Silverfern Group Pty Ltd (Silverfern), which held AFS licence number 382641. The decision was made on the basis that Silverfern had ceased carrying on a financial services business.
The cancellation of Silverfern's AFS licence was made with the company's consent. It followed enquiries by ASIC into Silverfern's non-compliance with statutory reporting obligations, audit requirements and a failure to pay ASIC fees. According to ASIC, Silverfern resolved its non-compliance regarding these matters prior to the cancellation of the licence.
Under applicable provisions, ASIC may cancel an AFS licence held by a body corporate without the requirement for a hearing if the body has ceased to carry on the financial services business. In this case, ASIC relied on that power in cancelling Silverfern's licence once it determined that the business was no longer operating as a financial services provider.
Background on Silverfern's AFS licence
Silverfern had held AFS licence number 382641 since 9 July 2009. The licence authorised the company to provide financial services in Australia, subject to ongoing compliance with statutory reporting, audit and fee payment requirements administered by ASIC.
The resolution of Silverfern's earlier non-compliance with reporting, audit and fee obligations occurred before ASIC proceeded with the cancellation. The cancellation therefore reflects the status of Silverfern as having ceased to carry on a financial services business, rather than being based on outstanding compliance failures.
The action taken by ASIC underlines that an AFS licence can be cancelled when the licensed body corporate is no longer operating a financial services business, and that such a cancellation may proceed without a formal hearing where the statutory conditions are met.
