Australian Securities & Investments Commission cancels Spectre Financial Group’s AFS licence for organisational competence failures

The Australian Securities & Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Spectre Financial Group Australia Pty Ltd, which had been suspended since May 2024. ASIC cancelled the licence after finding Spectre failed to maintain the organisational competence required to provide the financial services covered by its authorisations. The competence failures included not appointing sufficient responsible managers with appropriate knowledge and skills to provide general financial product advice and to deal in derivatives and foreign exchange contracts. ASIC noted concerns that if the suspension were lifted and Spectre resumed providing financial services, clients could face an increased risk of financial loss. Spectre held AFS licence 501156 since 23 October 2018 and had been authorised to provide general financial product advice and deal in derivatives and foreign exchange contracts to retail and wholesale clients; it ceased operating a financial services business about three years ago and did not resume, during which it also underwent three ownership changes and changes to directors and responsible managers. The licence had been suspended from 29 May 2024 to 29 November 2024, and then extended on 25 November 2024 to 30 May 2025. Spectre can apply to the Administrative Review Tribunal for a review of ASIC’s decision.