First Pacific Securities (Australia) Limited (FPSA) has had its Australian Financial Services Licence (AFSL) cancelled following an investigation by ASIC.
FPSA had its licence revoked after the regulator found the group had failed to comply with the Corporations Act reporting procedure.
ASIC found FPSA had falsely reported sufficient assets on its balance sheet to meet financial obligations in order to obtain an AFSL.
The group had also failed to sign up to be a member of an external dispute resolution scheme.
"Financial licensees must ensure that they act honestly and fairly when applying for their licence and at all times comply with their obligations under the Act", said ASIC executive director of enforcement Jan Redfern.
The South Australia based group was the responsible entity of a registered managed investment scheme known as First Pacific Mortgage & Mezzanine Fund, which pooled investor funds and then on lent to borrowers.
Investors in FPSA were offered four investment options; first mortgage, second mortgage, bridging and select portfolios.
FPSA has the right to lodge an application for review of ASIC's decision with the administrative appeals tribunal.
