ASIC has cancelled the Australian financial services (AFS) licence of Victoria-based, Southern Mortgages Ltd (SML), for failure to comply with financial services laws.
SML did not maintain sufficient financial resources and failed to lodge its financial statements and audit reports for consecutive years since 30 June 2015. SML also did not comply with its obligation to hold membership of a dispute resolution system.
The licence cancellation was effective from 24 September 2019.
A responsible entity must carry on their duties with reasonable care and diligence"
"A responsible entity must carry on their duties with reasonable care and diligence. This includes actively monitoring each scheme and, where necessary, winding up a scheme that is no longer viable in a timely manner," said ASIC commissioner Danielle Press.
"ASIC took action to cancel the licence of SML because we formed the view it was not completing the wind up of the Scheme in a timely manner, nor continuing to comply with their core duties as a licensee."
Under the terms of the licence cancellation, SML can continue limited operations until 24 March 2020 to facilitate the winding up. SML held an AFS licence number since January 2004.
SML has the right to seek a review of ASIC's decision from the Administrative Appeals Tribunal.