Why Did ASIC Sue Amex and Terminate 2 Licenses?

On Tuesday, three companies were subject to regulatory actions by the Australian Securities and Investments Commission (ASIC). The financial market watchdog took civil penalty action against American Express Australia Limited, cancelled AFSL Group Pty Ltd (AFSL Group) authorization, and suspended Quantum Funds Management Limited's (QFML) Australian financial services (AFS) licence (Amex).

Four managed investment schemes were being run by QMFL, whose licence was suspended. According to ASIC, the company lacks sufficient liability insurance to offer such products. The entity may continue to offer the services required to wind up the current schemes after the suspension.

In its first civil penalty case involving the breach of distribution and credit card design duties, the regulator has reportedly started court proceedings against American Express Australia, according to a press release from December 6th 2022.

Co-branded credit cards were available from Amex and the David Jones retail chain. Amex ought to have created a Target Market Determination (TMD) to evaluate the product's proper distribution and the potential pool of pertinent recipients. According to ASIC, people who wanted to use a card that earned loyalty points to make credit purchases were not restricted by...Full details: https://www.wikifx.com/en/newsdetail/202212089474509881.html?source=emily