ASIC suspends AFS licence of Investors Exchange Limited

Australian Securities and Investments Commission (​ASIC) announced that it has suspended the Australian financial services (AFS) licence of Queensland-based financial services provider Investors Exchange Limited (IEL) for a period of six weeks, effective 15 January 2021.

IEL is the responsible entity of Investors Exchange Fund and Investors Exchange Investment Fund. IEL also previously operated Dean Capital Property Trust No. 1.

The licence was suspended because IEL failed to comply with financial services laws and maintain competence to provide the financial services covered by its AFS licence. Specifically, IEL:

• failed to lodge its annual financial statements and auditor reports by the requisite date for the financial years ending 2014, 2016, 2017, 2018 and 2019;
• failed to lodge the compliance plan auditor'sreports for Investors Exchange Investment Fund by the requisite date in2014 and 2016, and for both Schemes by the requisite date in 2017, 2018and 2019; and
• failed to comply with the compliance plan for Dean Capital Property Trust No. 1 in 2012; and
• issued defective product disclosure documents in 2018 and 2019.

The suspension will allow IEL time to review its competence and take steps to ensure compliance with its obligations as an AFS licensee. IEL has the right to seek a review of ASIC's decision at the Administrative Appeals Tribunal.