Australian regulator ASIC has announced earlier today that it has suspended the Australian financial services (AFS) licence of Sydney-based financial services provider KP International Group Australia Pty Ltd (KP International) until 23 September 2020.
According to the regulator, KP International did not adequately address systemic issues identified by the Financial Ombudsman Service (now Australian Financial Complaints Authority or AFCA). Certain exclusions in KP’s professional indemnity insurance cover did not meet minimum adequacy requirements as well and at least 23 clients of KP International were affected by systemic issues.
ASIC determined that KP International had failed to do all things necessary to ensure that the financial services covered by its licence were provided efficiently. The regulator expects licensees to address concerns raised by AFCA in a timely manner and remediate clients where necessary.
KP International is required to remain a member of AFCA and to obtain adequate professional indemnity insurance during the licence suspension period. The period of suspension will allow the licensee to make all necessary changes to address ASIC’s concerns.
The official announcement can be seen here.
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ASIC suspends KP International Group Australia’s AFS licence was first posted on October 23, 2019 at 11:07 am.