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Thursday 28 May 2015

15-133MR ASIC suspends BBY Ltd’s AFS licence

ASIC has suspended the Australian financial services (AFS) licences held by BBY Ltd, BBY Advisory Services Pty Ltd, and SmarTrader Limited.

Importantly, the terms of the suspension allow the Receivers and Administrators to transfer a client’s “holder identification number” (HIN) to another market participant in accordance with instructions from the client.

The suspension follows the appointment of Stephen Vaughan and Ian Hall as joint administrators to these companies on 17 May 2015. Steven Parbery and Brett Lord were appointed receivers and managers of BBY Ltd and BBY Advisory Services Pty Ltd on 18 May 2015.

The suspension of these AFS licences is effective from 28 May 2015 until 28 May 2018.

Under the Corporations Act, ASIC has the power to suspend or cancel an AFS licence, without holding a hearing, where the AFS Licence is held by a body corporate which is placed under external administration.

The companies have a right to seek a review of ASIC’s decision at the Administrative Appeals Tribunal.

Background

The terms of the AFS licence suspension allow the BBY Licences to continue in effect for the following purposes only: 

(a)    to ensure that clients of the Licensees continue to have access to an external dispute resolution scheme;

(b)   to ensure that clients of the Licensees continue to have access to the National Guarantee Fund;

(c)    to ensure that the Receivers and Administrators have the legal authority to transfer a client’s “holder identification number” (HIN) to another market participant in accordance with instructions from the client or to convert a licensee sponsored holding to an issuer sponsored holding in accordance with the ASX Settlement Operating Rules; and

(d)   to ensure the Licensees continue to be required to have arrangements for compensating retail clients for loss or damages suffered as a result of breaches of the Corporations Act by the companies or their representatives.

View ASIC’s dedicated BBY page

Editor's note

This media release was edited on 1 June 2015 to amend paragraph (c) under 'Background'

Last updated: 01/06/2015 12:00