ASIC Enforcement Action: Competency Failures

ASIC has cancelled Spectre Financial Group Australia Pty Ltd (Spectre)'s Australian Financial Services Licence (AFSL) for competency failures. This serves as a reminder to AFSL holders to review and maintain your organisational competence at all times.

ASIC found Spectre failed to appoint the appropriate number of Responsible Managers (RMs) with the relevant knowledge and skills to provide the financial services authorised by Spectre's AFSL. ASIC's concern was that if Spectre were to continue providing financial services, their clients might be put at a higher risk of financial loss.

Spectre ceased providing financial services in 2022 and underwent three (3) changes of control, including changes to its RMs and Directors. In May 2024, ASIC suspended Spectre's AFSL and allowed Spectre the opportunity to address the various compliance issues and failures. In May 2025, ASIC ultimately cancelled Spectre's AFSL for breaching the organisational competence obligation.

Key Takeaways

AFSL holders need to ensure robust systems and procedures are implemented to maintain and demonstrate organisational competence, including ensuring that RMs conduct Continuing Professional Development (CPD) training. Attention should be given to an AFSL's organisational competence particularly where:

• there has been a change of control;
• a RM has ceased in their role;
• the AFSL is varied to include additional authorisations;
• the scope of services offered by the AFSL has been expanded (whether or not an AFSL variation is required)

Reviewing organisational competence of your AFSL will include a consideration of:

• the qualifications held by each of the RMs;
• the ongoing CPD training which the RMs;
• the authorisations on your AFSL and which RMs have the appropriate skills and qualifications in relation to the authorisations.

Maintain organisational competence at all times