The Australian Securities and Investments Commission (ASIC) today announced that it has cancelled the Australian Financial Services (AFS) licence of Assurance Cover Australia Pty Ltd (ACA), with the revocation order effective from 5 April 2023.

Assurance Cover Australia, a managed investment scheme run by ACA, provides insurance to drivers in the peer-to-peer transport industry through discretionary group mutual funds, but the scheme is not officially registered.

As ACA has not held the professional liability insurance required to operate its business since 26 April 2019, ASIC has revoked its AFS licence. This license revocation order allows ACA to provide financial services reasonably necessary or incidental to ending the program by June 30, 2023.

Background of the case

Assurance Cover Australia Pty Ltd (ACA) has held an AFS licence (License number: 448227) since 9 September 2014.

On July 28, 2022, ASCI suspended its ACA license for the first time because it failed to hold required professional liability insurance. ASIC has since extended the licence suspension to April 3, 2023. The moratorium allows ACA to continue providing financial services to its existing customers, while requiring the company to pursue other strategies to develop compliant compensation arrangements.