Freedom Insurance Group has begun cancelling its Australian Financial Services Licences as the company’s exit from all operating businesses continues apace in the wake of a belting at the royal commission.
The company, which last year was found to have sold life insurance over the phone to a man with Down syndrome, announced in April it would be quitting all of its operating businesses with any money left over going to investors.
Freedom announced in an update on Thursday the $5 million sale of its administration services business had been completed and the wind-down of its Spectrum Wealth Advisers was continuing.
The company also advised it had begun the cancellation process of its Australian Financial Services Licences with ASIC for both Freedom Insurance Pty Ltd and Spectrum.
It noted that there may be continuing obligations imposed by ASIC on one or both companies even after the licences are cancelled.
Last year, the insurer was found to have engaged in dodgy tactics during the royal commission, including pressuring a man with Down syndrome into buying insurance over the phone.
The company encouraged the sales agent involved to sell aggressively, the royal commission heard.
Freedom in December warned it may face a liquidity shortfall with $4 million in customer remediations and a self-imposed sales suspension nearly completely eroding its share price.
Freedom’s requested suspension from trading on the ASX continues.
The company had previously said it would report its half-year accounts for the six months to December 31 by June 30 and on Thursday said it was working closely with its auditors to finalise accounts.