The Australian Securities and Investments Commission (ASIC) has cancelled the financial services (AFS) licence of a provider of coverages in the motor industry space. In a media release, ASIC said it cancelled the AFS licence of Assurance Cover Australia (ACA) because the firm did not hold the required professional indemnity (PI) insurance cover.
The regulator said ACA operated an unregistered managed investment scheme to provide its insurance style coverage through a discretionary mutual fund.
The release said the terms of the cancellation order allow ACA to provide financial services until June 30 that are “reasonably necessary for, or incidental to the winding up of the Scheme.”
ASIC originally suspended ACA’s AFS licence in July last year because of the firm’s failure to hold the required PI cover. The release said ACA can apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
According to its website, ACA was established in response to the rising cost of insurance in the point to point transportation industry.
The NSW Government defines point to point transport as “any passenger service in a vehicle (other than a bus) that can take customers on the route they choose, at a time that suits them, for a fare.” These forms of transport include taxis, limousines, rideshare services and airport transfers.
The original article’s subheading incorrectly stated that ACA was “accused” of an unregistered managed investment scheme. This has been corrected.
