ASIC said it was concerned that Golden Financial was not complying with its general licensee obligations.

“Golden Financial failed to lodge its annual financial reports and did not have membership of an external dispute resolution system,” ASIC said.

In response to ASIC’s concerns, Golden Financial advised ASIC that it had ceased its financial services business and requested the cancellation of its AFS licence.

ASIC previously took action against Golden Financial Group, previously known as NSG Services Pty Ltd, in 2017 for breaching the best interests duty.

The Federal Court imposed a $1 million civil penalty against the firm for breaches relating to advice that was provided to clients on eight occasions between July 2013 and August 2015.

It was the first civil penalty imposed on a financial services licensee for breaches of the best interests duty.

The $1 million penalty related to financial advice provided to clients by NSG advisers on eight occasions between July 2013 and August 2015.

“The clients were commonly sold insurance and advised to roll over superannuation accounts that committed them to costly, unsuitable and unnecessary financial arrangements,” ASIC said.

The court found that the failures by NSG to ensure compliance by its representatives were systemic in nature.

It found that NSG’s representatives breached section 961B of the Corporations Act by failing to take reasonable steps to ensure that they provided advice that complied with the best interests obligations, and section 961G of the act by failing to take reasonable steps to ensure that they provided advice that was appropriate to its clients.