ASIC Suspends AFS License of Assurance Cover Australia Pty Ltd

ASIC has suspended the Australian financial services (AFS) licence of Assurance Cover Australia Pty Ltd (ACA) until 28 November 2022.

ACA operates an unregistered managed investment scheme, 'Assurance Cover Australia' (Scheme), which provides cover (through a discretionary mutual fund) for drivers in the peer-to-peer transport industry.

ASIC found that ACA did not have the required professional indemnity insurance coverage in place since 26 April 2019.

The licence suspension means ACA cannot provide financial services, including the issue of new interests in the Scheme, other than to existing clients.

ASIC will lift the suspension earlier if ACA obtains the required professional indemnity insurance coverage before the end of the suspension date. ASIC may consider further action if ACA continues to not comply with its obligations at the end of the suspension period.

At the same time, the commission also suspends the AFS licence of Sterling & Freeman Advisory Pty Ltd (Sterling & Freeman) and cancels the AFS licence of Rizzak Capital Pty Ltd​ (Rizzak Capital).