ASIC has terminated the Australian Financial Services Licence (AFSL) of a subsidiary operated by property firm Teys.
Teys Property Funds Management (TPFL), the responsible entity for 11 managed property and mortgage funds, can no longer hold an AFSL.
In December 2009, the regulator issued Teys with a notice stating it was concerned the company may not have complied with its obligations under the terms of an AFSL.
ASIC had scheduled a hearing to consider the cancellation of the AFSL, but on 5 March its subsidiary TPFL went into administration.
The company said it was unable to support the business after it sold a major stake of its strata management businesses to Whittles Australia.
Setter Shepard was subsequently appointed as the administrator.
Under the Corporations Act, ASIC can suspend or cancel an AFSL if the company holding the licence is placed in administration without holding a hearing.
The regulator said its decision to cancel the AFSL was made following discussions with the external administrator, to ensure the timing of the decision did not adversely impact investors in the managed investment scheme operated by Teys.
The company's work in property funds management will now operate through a subsidiary, AT Capital Proprietary.
