ASIC Cancels AFS and ACL Licenses of Mortgage & General Financial Services Pty Ltd

​The Australian Securities and Investments Commission (ASIC) announced that it has cancelled the Australian financial services licence (AFSL) and Australian credit licence (ACL) of Mortgage & General Financial Services Pty Ltd (Mortgage & General).

According to a statement from the Australian regulator, ASIC has canceled the license following concerns that Mortgage & General was not complying with its obligations under its licenses to demonstrate that it had the competence and resources to provide financial services and credit activities.

According to the statement published, the regulator canceled the AFS and ACL licenses after it found that the firm failed to appoint a new 'key person' following the death of the former key person, which didn't meet the terms of both the AFSL and ACL.

Furthermore, the company also failed to lodge its accounts under its AFSL for the financial years ending 2017, 2018 and 2019. AFSL holders are required to lodge their financial statements and auditor's reports annually to demonstrate that they have adequate financial resources to provide the services covered by their licence and to conduct their business lawfully.

Under the Corporations Act and National Consumer Credit Protection Act respectively, ASIC may suspend or cancel an AFSL or an ACL if the licensee fails to meet their obligations.