ASIC cancels AFS license of Assurance Cover Australia Pty Ltd

Assurance Cover Australia Pty Ltd has had its Australian Financial Services (AFS) license canceled by ASIC. The reason for the cancellation is due to the fact that the company had been operating an unregistered managed investment scheme called “Assurance Cover Australia” that provided coverage for drivers in the peer-to-peer transport industry through a discretionary mutual fund. The cancellation of the AFS license was caused by the fact that ACA had not held the required professional indemnity insurance cover since April 26th, 2019.

While the cancellation order is in effect, ACA is permitted to provide financial services that are necessary or incidental to the winding up of the scheme until June 30th, 2023. ACA may apply to the Administrative Appeals Tribunal if they wish to have ASIC's decision reviewed.

Assurance Cover Australia Pty Ltd has held AFS license no. 448227 since September 9th, 2014. Initially, ASIC suspended ACA's AFS license on July 28th, 2022 due to ACA's failure to hold the required professional indemnity cover. ASIC then extended the suspension until April 3rd, 2023. Despite the extension, ACA was allowed to continue providing financial services to existing clients while searching for alternative strategies to put compliant compensation arrangements in place.