ASIC Applications must be accurate

When making any applications for licences from ASIC, financial service providers must provide accurate information, particularly about qualifications. Recently, ASIC has prosecuted an applicant for making false statements in an application.

The documents containing false statements submitted by a financial adviser to ASIC included a forged educational certificate and a table referring to an educational qualification that has not been obtained.

The court found each of the charges proven, and placed the adviser on a good behaviour bond for a 12-month period, without recording a conviction because the adviser has pleaded guilty and cooperated with ASIC.

ASIC Deputy Chairman Peter Kell said, “The issuing of charges reflects the high degree of integrity expected of people who apply for and operate under a financial services licence. It also shows that ASIC wants reputable financial advisers, who play by the rules, to be able to operate on a level playing field.”

Under section 1308(2) of the Corporations Act 2001 (Cth), the maximum penalty at the time of the offending for each offence was 5 years imprisonment and/or a fine of $36,000. However because the matter was heard summarily the maximum penalty for each offence was limited to one year imprisonment and/or a fine of $10,800.

Applicants must be very careful to make sure their applications for ASIC licences, either an Australian Financial Services Licence (AFSL) or an Australian Credit Licence (ACL), are accurate and complete.

For assistance with applying for an AFSL or an ACL call O’Shea Lawyers on 07 3359 7967 or email oshealawyers@bigpond.com.

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