Perth-based Addwealth Financial Services has lost its operating licence after failing to lodge independent compliance reports.
The Australian Securities and Investment Commission (ASIC) cited concerns over the company’s advice to clients and said Addwealth was unable to comply with its licence conditions.
In September 2012 ASIC placed additional conditions on Addwealth’s licence after monitoring of its advice service raised concerns that the company was offering inappropriate advice to clients and failing to make provisions to prevent conflicts of interest.
As part of the licence cancellation, ASIC imposed conditions that Addwealth extend professional indemnity insurance and maintain its membership of an external dispute resolution service for the next 12 months.
ASIC is informing Addwealth clients of the licence cancellation and related matters regarding the company’s financial products and to process any complaints against Addwealth.
ASIC is conducting enquiries into the conduct of individual officers of Addwealth and related companies.
Addwealth Financial Services provides advice on retirement planning, superannuation, self-managed superannuation, investments and managed funds.
