ASIC Suspends License of Celtic Equities Management!

ASIC Suspends Celtic Equities Management’s AFS License Due to Compliance FailuresThe Australian Securities and Investments Commission (ASIC) has taken decisive regulatory action by suspending the Australian Financial Services (AFS) license of Celtic Equities Management Pty Ltd for a duration of six months. This suspension, effective as of October 19, 2023, comes as a response to Celtic Equities Management’s significant compliance failures. This happened during ASIC’s recent surveillance.

Celtic Equities Management, which has held the AFS license since December 11, 2003, has been found in breach of various regulatory obligations. The primary violations include:

• Failure to Lodge Financial Statements and Audit Reports. Celtic Equities Management failed to fulfill its obligation to submit financial statements and audit reports for the financial years ending from June 30, 2017, through June 30, 2022.
• Unpaid ASIC Industry Funding Levies. The company has also neglected its responsibility to pay its outstanding ASIC Industry Funding Levies.
• Unsettled Late Payment Penalties. Celtic Equities Management had accumulated late payment penalties that remained unaddressed.

ASIC Suspends License.

The suspension of Celtic Equities Management’s AFS license, with license number 225216, is aimed at giving the company an opportunity to rectify these compliance issues. Over the six-month suspension period, the firm will take all necessary actions to demonstrate its commitment to meeting its outstanding obligations to ASIC. However, it is important to highlight that should Celtic Equities Management address these compliance issues by the end of the suspension period. ASIC has explicitly said that further regulatory action, potentially including the revocation of the AFS license, will be under consideration.

It is noteworthy that ASIC has been rigorously enforcing regulatory measures in the financial industry. This includes issuing new licenses, rejecting or withdrawing 401 license applications, canceling 515 licenses, and suspending 26 licenses. Additionally, ASIC recently canceled the license of FTX Australia. It is a subsidiary of the bankrupt FTX empire, underscoring its dedication to regulatory enforcement. The regulator has also initiated enforcement actions against non-compliant entities. With recent lawsuits targeting the local operator of the Kraken crypto exchange and eToro. These legal actions address failures related to design and distribution obligations and client identification within the Contracts for Difference (CFD) sector.

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