Insurance

ASIC strips AFS license from Epic Residence Investments

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ASIC strips AFS license from Epic Property Investments&#13

The Australian Securities and Investments Price (ASIC) has revoked Epic House Investments Ltd’s (Epic) Australian monetary options (AFS) license, profitable Might properly 31, 2022, for failing to amass a important insurance coverage embrace.

Epic has held its AFS license 239011 contemplating the truth that February 26, 2004. It operates two registered managed monetary funding schemes:

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  • Epic Diversified House Fund ARSN 099 566 202 and
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  • Epic Property Monetary funding Fund ARSN 099 566 211 (the Methods).
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However, ASIC discovered that Epic has not held knowledgeable indemnity (PI) insurance coverage insurance policies, a important insurance coverage plan embrace, contemplating the truth that April 21, 2021. Subsequently, it decided that the group doesn’t give retail purchasers with purchaser protections required beneath the regulatory regime for AFS licensees.

Learn extra: ASIC releases present financial reporting specs for AFS licensees

Underneath the Organizations Act 2001, AFS licensees have to have insurance coverage coverage cowl to compensate retail purchasers for losses they endure since of a breach of obligations by the licensee or its representatives, utilizing into consideration the character of licensees’ enterprise enterprise and doable obligation for fee guarantees.

Underneath the phrases of its AFS license’s cancellation, Epic can work under its AFS license proper up till December 31, 2022, however just for:

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  • Delivering cash providers which can be required for, or incidental to, the winding up of the Strategies and
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  • Ensuring that customers and former customers of the Schemes proceed to have entry to an exterior dispute decision scheme.
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These circumstances cut back the cancellation to adversely have an have an effect on on Epic’s previous or current associates, in accordance to ASIC.

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