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ASIC cancels adviser group licence

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The corporate regulator has cancelled a financial advice company’s licence.

Golden Financial Group’s licence had been suspended since March 18 after it failed to lodge annual financial reports and join an external dispute resolution system.

It then advised the Australian Securities and Investments Commission it had ceased its financial services business and requested its licence be cancelled.

Golden Financial had held its licence since April 3 2008, and previously traded as NSG Services under the same licence.

The Federal Court levelled a $1 million fine, plus costs, against NSG nearly two years ago over dodgy financial advice provided on eight occasions between July 2013 and August 2015.

In that case, clients were commonly sold insurance and advised to move to superannuation accounts that committed them to costly, unsuitable and unnecessary financial arrangements.

The court found compliance failures were systemic and it had breached the best-interests duty under Future of Financial Advice reforms.