The Australian Securities & Investments Commission (ASIC) has cancelled the Australian Financial Services (AFS) licence of Financial Services Group Australia Pty Ltd (FSGA), effective 7 June 2025, and permanently banned its responsible manager, Graham Holmes, from providing financial services or controlling a financial services business. ASIC found FSGA failed to ensure certain representatives gave advice that was appropriate and in clients’ best interests, maintain adequate financial and human resources and organisational competence, lodge financial statements and auditor reports on time, and submit breach reports. It also found FSGA did not comply with a licence condition requiring total assets to exceed total liabilities for financial years 2022 and 2023. Despite the licence cancellation, FSGA must remain a member of the Australian Financial Complaints Authority (AFCA) and maintain professional indemnity insurance until 4 June 2026, and ASIC highlighted that complaints to AFCA relating to advice from FSGA should be lodged by 4 June 2026. ASIC said Holmes was involved in contraventions by FSGA, including failing to ensure representatives acted in clients’ best interests, and that he acted as an RM “on paper” only while receiving RM fees, leading ASIC to conclude he was not a fit and proper person. FSGA and Holmes can apply to the Administrative Review Tribunal for review of ASIC’s decisions. ASIC’s action follows concerns about advice by certain authorised representatives linked to consumer investments in the Shield Master Fund and the First Guardian Master Fund, and ASIC said its investigations into these matters, including inquiries involving former sole director Ferras Merhi and associated entities, are ongoing.

Original source View in tracker