Focused Financial Advice’s licence has been temporarily suspended after it failed to notify the corporate regulator of changes to its “key person and responsible manager” arrangement.

Under financial services laws, a key person condition is imposed on a licence if the licensee is heavily dependent on the competence of one or two responsible managers.

“The key person condition is an important regulatory safeguard,” the Australian Securities and Investments Commission said.

The advisory provided financial services – including around life insurance – for more than two years without a key person after ownership changes in 2023.

“Following the sale of the shares in FFA… the key person and responsible manager also ceased at this time,” the commission said.

“ASIC found that when the key person and responsible manager on the Australian financial services licence ceased, FFA failed to apply to ASIC to vary its AFS licence within five days as required by its AFS licence conditions.” 

The advisory was unaware of the breach until the commission made enquiries.

“AFS licensees must ensure they are always aware of the conditions on their licence and ensure they operate according to those conditions,” the commission said.

“ASIC has suspended the … licence of Focused Financial Advice until December 19 2025, pending assessment and approval by ASIC of a key person variation to its licence.”