ASIC has cancelled the Australian financial services (AFS) licence of Western Australia-based Addwealth Financial Services, finding it unable to comply with licence conditions. In September 2012 ASIC imposed additional licence conditions on Addwealth following concerns, among other things, over the appropriateness of advice to certain clients.
Addwealth provided advice on products and services including retirement planning and strategies, superannuation and rollovers, self-managed superannuation, share market investments and managed funds.
As part of the regulator’s ongoing monitoring of Addwealth’s compliance, ASIC became aware that the business had breached those additional licence conditions, including failing to lodge independent external compliance reports.
At the same time, Addwealth requested ASIC cancel its licence, which it agreed to do.
Conditions of the licence cancellation include Addwealth extending professional indemnity insurance for the next 12 months and maintaining its membership of an external dispute resolution service.
ASIC is writing to former Addwealth clients advising them of the circumstances of the licence cancellation and other general matters that they should know about.
Consumers who have complaints about their dealings with Addwealth can contact the Financial Ombudsman Service on 1300 780 808.
ASIC is conducting enquiries into the conduct of individual officers of Addwealth and related companies.
