Financial Options Pty Ltd Just Ended Its Permit Grace Period
The Australian Securities and Investments Commission (ASIC) suspended Financial Options Pty Ltd’s Australian Financial Services license last year. ASIC just canceled the companies license as of today.
Financial Options got suspended for not meeting its license obligations and since then didn’t acknowledge to address ASIC’s concerns.
The watchdog also permanently banned Mr. William John Henry Houwing from providing financial services. Jack Houwing, a Queensland-based financial adviser, took the position as director and authorized representative of Financial Options.
ASIC found that Houwing arranged for his clients to lend money to his related entities. These include Belbrooke Pty Ltd as a trustee for the Belbrooke Administration and Mortgage Trust.
Houwing also arranged clients for his own use, which he failed to repay on time. He failed to prioritize the interests of his clients over his own, revealing a conflict of interest as an advisor.
Additionally, the regulator claimed he didn’t have ‘adequate competence or training’ to provide services on top of infamy and poor character.
ASIC Commissioner Danielle Press said his failures not only harms clients but also erodes public trust in the financial system. The organization expects these advisers to uphold the values of integrity and professionalism.
Financial Options: A Cancellation Recap
Financial Options failed to lodge its accounts and audit report for its fiscal year ending June 30, 2018. It also failed to hold a dispute resolution system, showing incompetence and failure to maintain resources required by the license.
ASIC claimed Financial Options applied for a membership only after receiving a notice of hearing from them.
The suspension came during a bigger push to improve standards in the financial services industry. The authority was clamping down on firms that weren’t meeting their AFS license obligations.
Commenting on the suspension, ASIC said it expects licensees to ensure they’re able to provide services efficiently, honestly, and fairly.
Financial Options’ license halted until February 26, 2020.
