Two Australian financial services providers have had their licences cancelled by the Australian Securities and Investments Commission (ASIC) after failing to pay industry funding levies that were overdue for more than a year.
Downunder Insurance Services Ltd and Ipraxis Pty Ltd lost their Australian financial services (AFS) licences, effective June 24 and 25, respectively.
The regulator cited non-payment of levies required under the ASIC Supervisory Cost Recovery Levy Act 2017, along with associated penalties, as the reason for the action, which was taken under section 915B(3)(e) of the Corporations Act 2001 (Cth).
Downunder Insurance had held AFS licence number 281478 since February 2005. The licence authorised it to advise on and deal in general insurance products for retail clients.
Ipraxis had operated under AFS licence number 329337 since October 2008. The firm’s authorisations included financial product advice and dealing in various instruments such as life insurance, managed investment schemes, superannuation, and deposit products.
Both licensees can appeal ASIC’s decision through the Administrative Appeals Tribunal, as provided under administrative law procedures.
The cancellations coincide with heightened regulatory scrutiny in the lead-up to the Jan. 1, 2026, deadline for adviser education compliance.
Speaking at the Professional Planner Licensee Summit, ASIC commissioner Alan Kirkland outlined several areas of focus for the regulator, including sales conduct, adviser credentials, and offshoring of advice support functions.
Kirkland said ASIC continues to examine sales models that use aggressive tactics to direct clients into high-risk investment options, including schemes involving self-managed superannuation funds and property-based investments.
He noted that many of these interactions begin with unsolicited offers of assistance – such as locating lost superannuation – which then lead to persuasive telemarketing efforts to switch funds.
While the behaviour is not widespread, Kirkland said the effects can be significant. He confirmed that ASIC has initiated several enforcement cases aimed at protecting client assets and preventing further harm, with more actions expected.
Kirkland also flagged concerns about the number of advisers yet to meet new qualification standards. Of the 15,610 individuals listed on the Financial Advisers Register, only 6,426 have satisfied the education criteria, while more than 4,600 remain non-compliant.
ASIC has found discrepancies in the register, including advisers listing incomplete qualifications or referencing courses not on the approved list. Some advisers have also claimed eligibility for the “experienced provider” transition pathway without meeting the requirements.
Kirkland urged AFS licensees to update adviser records and verify their status before the 2026 deadline. He said ASIC will use register data in a post-deadline compliance program to determine who is authorised to continue offering advice.
ASIC is also examining the increased use of offshore outsourcing for functions such as paraplanning and administrative support.
Kirkland acknowledged that this trend is partly driven by cost and talent shortages but emphasised that AFS licensees remain fully accountable for regulatory compliance, regardless of service location.
The regulator is assessing how advice firms manage risks tied to overseas arrangements and plans to release guidance based on its findings later in the year.
