ASIC Cancels Trade Wind Financial Services’ AFS Licence

​The Australian Securities and Investments Commission (ASIC) announced on July 21 the cancellation of Trade Wind Financial Services Pty Ltd (Trade Wind Financial Services)’s AFS licence, effective 26 May 2021, due to its failing to co-operate with the Australian Financial Complaints Authority (AFCA) and pay two AFCA determinations on time.

Trade Wind Financial Services 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 AFS license.

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Moreover, the Australian regulator has banned 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.

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

ASIC found that 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. Also, ASIC found that 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.

Although ASIC has cancelled Trade Wind Financial Services’ AFS licence, 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 license 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.