A Melbourne-based company has had its Australian financial services (AFS) licence cancelled by ASIC after it failed to meet its obligations.

Earlier this month, ASIC cancelled FP Investment Partners Pty Ltd’s (FPIP) AFS licence following an investigation.

The regulator found FPIP had failed to ensure that adequate arrangements for the management of conflicts of interest were in place.

It further concluded that the company had failed to ensure that one of its previous authorised representatives, Joshua David Fuoco, had complied with financial services laws.

“In particular, FPIP failed to take reasonable steps to ensure that Mr Fuoco, in the context of providing advice regarding investments in two unregistered managed investment schemes, had a reasonable basis for the advice given to his clients, and whether statements of additional advice provided by Mr Fuoco contained all required information,” said ASIC in a statement.

The action to cancel FPIP’s AFS licence is part of ASIC’s focus to improve the standards of gatekeepers, specifically the obligations of financial services licensees to monitor authorised representatives and ensure adequate compliance measures are in place to address licence obligations.

FPIP has lodged an application with the Administrative Appeals Tribunal (AAT) for a stay and review of ASIC’s decision.

In a speech to the FINSIA Financial Services Conference 2011 in October, ASIC Chairman Greg Medcraft, committed the regulator to holding gatekeepers accountable.

“Holding the gatekeepers‘ of the financial service system to account is another important aspect,” he said.

“Gatekeepers, in the widest definition of the term, include accountants, directors, advisers, custodians, product manufacturers, market operators and participants.

“ASIC will take action where gatekeepers do not meet their responsibilities.”