ASIC Takes Action Against HJ Shortland & Co, Suspends AFS License for Six Months

The Australian Securities and Investments Commission (ASIC), Australia's financial regulatory authority, today announced that it has suspended the Australian financial services (AFS) licence of Alice Springs-based financial services provider HJ Shortland & Co Wealth Management Pty Ltd (HJ Shortland & Co) for a period of six months, effective 20 June 2022.

HJ Shortland & Co has held AFS licence number 324909 since 1 July 2008. According to the press release, the licence was suspended because HJ Shortland & Co has ceased to carry on a financial services business.

HJ Shortland & Co ceased to carry on a financial services business because its sole director, Harris Shortland, was incarcerated. Mr Shortland has lodged an appeal against his conviction. The appeal is due to be heard later this year.

ASIC acted to suspend HJ Shortland & Co's AFS licence for six months to allow time for the appeal to be heard and determined and to ensure that the HJ Shortland & Co takes the necessary steps to meet the obligations of an AFS licensee before recommencing its financial services business.

This week, ASIC has placed interim stop orders on three financial firms in response to deficiencies in the target market determination (TMD) for their products. These actions are ASIC's first use of the stop order powers under the design and distribution obligations (DDOs), which took effect on 5 October 2021.