The corporate regulator has extended its suspension of BBY's Australian financial services licence (AFSL) until 28 May 2019.
However, the AFSLs of BBY Advisory and SmarTrader – which were suspended for three years on 28 May 2015 – have now been cancelled.
BBY was placed in liquidation in May 2015 after the company was unable to repay a $6 million loan to St George Bank.
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In its statement, ASIC said the suspension of the BBY Ltd had been extended for four reasons:
- to ensure that clients of BBY continue to have access to an external dispute resolution scheme;
- to ensure that clients of BBY continue to have access to the National Guarantee Fund;
- to ensure that the receivers and administrators have the legal authority to transfer a client’s “holder identification number” to another market participant with instructions from the client or to convert a licensee-sponsored holding to an issuer-sponsored holding in accordance with the ASX Settlement Operating Rules; and
- to ensure BBY continues to be required to have arrangements for compensating retail clients for loss or damages suffered as a result of breaches of the Corporations Act by the companies or their representatives.
BBY and its subsidiaries have the right to seek a review of ASIC's decision at the Administrative Appeals Tribunal.
