The breaches of financial services laws arose from a business conducted by Wealth and Risk Management Pty Ltd, Yes FP Pty Ltd, now in liquidation, and Jeca Holdings Pty Ltd, also in liquidation, which offered and gave cash payments to financially vulnerable clients in connection with the provision of financial advice.

According to ASIC, the business advertised 'fast cash' to consumers with poor credit histories seeking loans and required consumers to receive and implement financial advice that recommended switching their superannuation and taking out 'high end' insurance.

It charged advice fees that were paid out of consumers’ superannuation funds and received upfront and trailing insurance commissions, and used the upfront insurance commission generated by the financial advice to provide a 'cash rebate' to clients, ASIC said.

ASIC has now cancelled the Australian Financial Services Licence (AFSL) of Wealth & Risk Management Pty Ltd.

As WRM has ceased to carry on its financial services business, ASIC cancelled the AFSL under s915B(3)(a) of the Corporations Act 2001 (Cth).

WRM’s cancellation became effective on 14 May 2018.