The additional licence conditions imposed on Pershing Securities Australia Pty Ltd (PSAL) in December 2019 have been removed as of 14 December 2020.
These conditions required PSAL to appoint an independent expert to conduct a review to assess and report on whether PSAL has the current and ongoing ability to comply with the client money requirements of the Corporations Act 2001 (the Act) (MR 19-344).
PSAL has fulfilled the requirements, including the obligation to provide attestations from a Senior Executive and non-executive board member to ASIC.
ASIC has today published a summary of the independent expert’s final report provided to ASIC under the conditions.
The additional conditions were imposed on PSAL following an investigation by ASIC into reports lodged by PSAL concerning breaches of the ‘client money’ provisions of the Act.
Client money provisions protect the interests of clients of Australian Financial Services licensees by separating client money from money belonging to licensees. Client money held in a compliant account receives statutory protection in the event of the licensee’s insolvency.
PSAL is an ASX and Chi-X market participant providing execution, clearing and settlement services to other financial intermediaries and their end clients. PSAL also provides third-party clearing and settlement services to other ASX and Chi-X trading participants, which includes holding the trading participants’ client monies and handling property.