The Australian Securities and Investments Commission (ASIC) has suspended the Australian Financial Services (AFS) license of Celtic Equities Management Pty Ltd for a period of six months. This decision arose after ASIC conducted thorough surveillance, uncovering breaches of regulatory obligations by the financial services provider.
Celtic Equities Management's Failure to Lodge Financial Statements and Audit Reports
The regulatory action, which took effect on October 19, 2023, is a direct response to Celtic Equities Management's failure to meet several key compliance requirements:
- Failure to Lodge Financial Statements and Audit Reports: Celtic Equities Management was found to be in violation of its obligation to submit financial statements and audit reports for the financial years ending from June 30, 2017, through June 30, 2022.
- Unpaid ASIC Industry Funding Levies: The company was also discovered to have failed to pay its outstanding ASIC Industry Funding Levies.
- Unsettled Late Payment Penalties: Celtic Equities Management had accrued outstanding late payment penalties which had not been addressed.
Celtic Equities Management Pty Ltd, with AFS number 245486, has held the AFS license 225216 since December 11, 2003. The suspension of Celtic Equities Management's AFS license is intended to provide the company with an opportunity to rectify these compliance issues.
During this six-month period, the firm is expected to take all necessary actions to demonstrate its ability to meet its outstanding obligations to ASIC. It is crucial to note that if Celtic Equities Management fails to rectify its compliance issues by the end of the six-month suspension period, ASIC has made it clear that they will consider further regulatory action, potentially leading to the cancellation of the company's AFS license.
ASIC Suspends 26 Licenses to Address Compliance Issues
Finance Magnates previously reported that ASIC had taken comprehensive measures in managing financial licenses, including the issuance of new licenses, the withdrawal or rejection of 401 license applications, the cancellation of 515 licenses, and the suspension of 26 licenses.
Additionally, the financial regulatory agency canceled the license of FTX Australia, a subsidiary of the bankrupt FTX empire, emphasizing its commitment to regulatory action. The regulator has taken enforcement actions against non-compliant entities.
These actions include recent lawsuits filed against the local operator of the Kraken crypto exchange and eToro. The lawsuits address their respective failures in adhering to design and distribution obligations, as well as client identification within the CFD sector.
