The corporate regulator said that the licence of the Alice Springs-based firm was suspended because it had ceased to carry on a financial services business.

According to ASIC, HJ Shortland & Co ceased to carry on a financial services business because its sole director, Harris Shortland, had been incarcerated.

Mr Shortland has lodged an appeal against his conviction, which is due to be heard later this year. HJ Shortland & Co has held an AFSL since 1 July 2008.

“ASIC acted to suspend HJ Shortland & Co’s AFS licence for six months to allow time for the appeal to be heard and determined and to ensure that the HJ Shortland & Co takes the necessary steps to meet the obligations of an AFS licensee before recommencing its financial services business,” the regulator said.

ASIC noted that the licensee may apply to the Administrative Appeals Tribunal for a review of its decision.

Earlier on Friday, ASIC confirmed it had banned the director and sole responsible manager for an Australian financial services licensee from performing the functions of an officer and a responsible manager of a financial services business for four years.

Albert Walters of Consolidated Mercantile Group (CMG) was found to have failed to monitor and oversee CMG’s business and to ensure that CMG complied with financial services laws.

Mr Walters was a director, shareholder and the sole responsible manager of CMG from 2005 to March 2019. In March that year, he sold CMG to another company but remained on as a director and the sole responsible manager.

"ASIC expects responsible managers to be actively involved in their licensee’s financial services business, which includes being directly responsible for significant day-to-day decisions," ASIC said in a statement.

"When Mr Walters ceased to be involved in CMG’s business in 2019, he should have arranged for a replacement responsible manager to ensure the business was being monitored and oversight was provided."

Mr Walters has the right to seek a review of ASIC's decision at the Administrative Appeals Tribunal.