ASIC revokes Halifax Investment Services' AFS license

Photo: Wikifx

The Australian Securities and Investments Commission (ASIC) recently announced that it has revoked the Australian Financial Services (AFS) license of Halifax Investment Services Pty Limited (hereinafter referred to as "Halifax"). The revocation decision will take effect on Jan 8, 2021.

The terms of the cancellation of the AFS license allow Halifax to use its rights on a limited basis until Jan 7, 2022, but only for the following purposes:

• Ensure that Halifax customers can continue to use the external dispute resolution plan;
• Ensure that Halifax continues to have arrangements to compensate retail customers, including holding professional compensation insurance;
• The provision of financial services to Halifax's retail or wholesale customers is limited to the termination of existing arrangements with customers.

If the above conditions are in place so that the cancellation will not adversely affect past or current customers.

Background introduction

• Halifax is a financial services license holder, headquartered in Sydney, and has some subsidiaries in Auckland, New Zealand.
• On Jan 8, 2019, ASIC suspended the Halifax AFS license until Jan10, 2020.
• Previously, Ferrier Hodgson's Morgan Kelly, Stewart McCallum and Phil Quinlan were appointed as joint voluntary administrators of Halifax on Nov 23, 2018.
• On Mar 20, 2019, at the second meeting of creditors, it was decided to liquidate Halifax and the administrator was appointed as the liquidator.
• On Dec18, 2019, ASIC extended the suspension period of the Halifax AFS license to Jan8, 2021.
• The Federal Court of Australia and the High Court of New Zealand held a joint hearing on the distribution of customer funds held by Halifax, which began on Nov 30, 2020 and ended on Dec 9. Judges Venning and His Excellency Judge Markovic have reserved their decision on this matter.
• According to the "Company Law", ASIC has the right to suspend or cancel the AFS license without holding a hearing if the AFS license is placed under external management or held by a corporate body in liquidation.
• Finally, ASIC stated that the aforementioned licensee has the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decision.

Reprinted from Wikifx, the copyright all reserved by the original author.