ASIC Announces Cancellation of BBY Ltd’s AFS licence

The Australian Securities and Investments Commission (ASIC) announced today that it has cancelled the Australian financial services (AFS) licence held by BBY Limited (BBY), an Australian stock broking, corporate advisory and asset management firm, effective 24 June 2021.

According to ASIC, the terms of the cancellation permit the AFS licence of BBY to continue in effect until 31 March 2022 for the following purposes only:

·to ensure that clients of BBY continue to have access to an external dispute resolution scheme;

·to ensure that clients of BBY continue to have access to the National Guarantee Fund;

·to ensure that the receivers and liquidators have the legal authority to transfer a client’s “holder identification number” to another market participant with instructions from the client or to convert a licensee sponsored holding to an issuer sponsored holding in accordance with the ASX Settlement Operating Rules; and

·to ensure BBY continues to be required to have arrangements for compensating retail clients for loss or damages suffered as a result of breaches of the Corporations Act by the companies or their representatives.

The Australia regulator has decided to suspend the firm’s AFS licence since 28 May 2015. And the first suspension period was for 3 years. On 27 May 2018, ASIC decided to extend the suspension for a further 12 months until 28 May 2019 . On 27 May 2020, ASIC decided to extend the suspension until 30 June 2021.

Under the Corporations Act, ASIC has the power to suspend or cancel an AFS licence, without holding a hearing, where the AFS licence is held by a body corporate which is placed under external administration.