ASIC cancels AFS licence of Trade Wind Financial Services

The Australian Securities and Investments Commission (ASIC) today announces the imposition of a ban on former financial adviser Adam John Bevan for five years from providing financial services, controlling a financial services business, or performing any function in relation to carrying on a financial services business.

Mr Bevan was an authorised representative of Gold Coast based Australian financial services licensee, Trade Wind Financial Services Pty Ltd between 25 July 2017 and 18 May 2020. During that period, Mr Bevan was also the sole director of Trade Wind FS.

ASIC found that Mr Bevan failed to act in the best interests of three Trade Wind FS clients when he failed to make reasonable enquiries about their existing superannuation funds and when he did not put in place measures to ensure their funds were transferred in accordance with his advice.

The regulator also found that Mr Bevan is not a fit and proper person, having regard to his connection to a refusal or failure to give effect to a determination by AFCA.

ASIC has also cancelled the AFSL of Trade Wind FS, effective 26 May 2021. ASIC took this action due to a failure by Trade Wind FS to co-operate with the Australian Financial Complaints Authority (AFCA) and pay two AFCA determinations on time.

Trade Wind FS also failed to lodge its 2019 and 2020 audited financial accounts and comply with several licence conditions including failing to notify ASIC of the change in the key person for the AFSL.

AFSL holders must comply with their licence conditions and have adequate resources to provide the financial services covered by their licence. ASIC may suspend or cancel an AFSL if a licensee fails to meet its obligations.

Trade Wind FS held an AFSL since 16 December 2010 (AFSL number 458115).

Although ASIC has cancelled the AFSL, it has used its power under s915H of the Corporations Act to allow the licence to continue in effect until 31 August 2021. This ensures that the AFSL is treated as not having been cancelled for the purpose of putting in place a dispute resolution scheme and further arrangements for compensating retail clients, including professional indemnity insurance.

Leave a Reply

Your email address will not be published. Required fields are marked *