ASIC's Decision to Cancel AFS License of Olive Financial Markets Upheld by AAT

The Administrative Appeals Tribunal (AAT) has upheld ASIC's decision to cancel the Australian financial services (AFS) licence of Olive Financial Markets Pty Ltd (Olive).

Between 2013 and 2018, Olive operated two Gold Coast-based financial services businesses. In March 2020, ASIC cancelled Olive's AFS​ following concerns it had breached a number of its legal obligations. Olive applied to the AAT on 17 March 2020 for a review of ASIC's decision

Following a hearing in early 2021, the AAT found that Olive's contraventions included engaging in unconscionable conduct, prohibited hawking, misleading or deceptive conduct, false or misleading statements, failing to provide appropriate advice and failing to act in the best interests of clients.

The AAT stated these 'problems went undetected – or were ignored – over a long period partly because of serious shortcomings in the compliance arrangements and complaints handling process' and that this 'bad behaviour went on under the noses of senior managers who manifestly failed to supervise those for whom they were responsible'.

Despite improvements made by Olive to its business and the AAT stating, at this point, they do not have reason to believe Olive is likely to contravene its obligations in the future, the AAT was satisfied that the cancellation of the licence was appropriate. The AAT noted the 'serious and systemic' contraventions that occurred over an extended period, stating 'cancellation is the only appropriate option given the seriousness of that conduct and the need to deter similar conduct elsewhere'.