By
The Australian Securities & Investments Commission (ASIC) has cancelled the AFS licence of Epic Property Investments effective May 31, 2022, for failure to obtain cover required under the regulatory regime for all AFS licensees.
Under the Corporations Act 2001, AFS licensees must have ready arrangements to compensate retail clients for losses suffered due to breach of obligations by the licensee or its representative. Arrangements must include adequate professional indemnity insurance cover that accounts for the nature of the licensee’s business and potential liability for compensation claims.
Epic Property Investments has not held professional indemnity insurance since April 21, 2021. As a result, ASIC found that it had failed to comply with its obligations on an ongoing basis and to provide retail clients with the required level of protection.
ASIC clarified that Epic Property Investments could continue to provide financial services on a limited basis until December 31, 2022, to the extent necessary for or incidental to winding up its registered managed investment schemes and to ensure members and former members of its schemes had access to an external dispute resolution scheme.
