Australian regulator revokes Airrails AFS licence for three months

The Australian Securities and Investments Commission (ASIC) has suspended the Australian Financial Services (AFS) license of Airrails Pty Ltd for three months.

Due to the license suspension, Airrails will not be able to provide financial services during the suspension period from June 21, 2024 to September 21, 2024.

Following an administrative hearing, ASIC found that Airrails had failed to file its financial statements, auditor’s report and audit opinion for the financial year ended 30 June 2023 within the prescribed time period and in accordance with the terms of its AFS licence.

Under the Corporations Act, ASIC may suspend or revoke an AFS licence if a licensee fails to comply with its general obligations under section 912A. These include the obligation to comply with financial services laws, including the obligation to file financial reports with ASIC annually.

Airrails holds AFS license number 526878, which allows the company to offer the following services to retail and wholesale customers:

• general advice on basic deposit products and cashless payment products; and
• trade in simple deposit products and cashless payment products.

The company has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.