According to a statement, the review comes after an ASIC surveillance – which concluded in September 2016 – found concerns surrounding compliance with the obligation to act in the best interests of clients and the appropriateness of advice provided.
ASIC said it also had concerns about Carwardine’s resources to ensure it complied with its obligations as a licensee and carry out supervisory arrangements. There were also concerns about Carwardine’s ability to ensure its representatives comply with financial services laws.
As a result, “Carwardine has agreed to engage an independent expert who will review, assess and make recommendations regarding Carwardine’s compliance with the financial services laws”, the statement said.
“The expert will also assess whether recommendations made have been implemented effectively,” the statement said.
The independent expert will report to ASIC and Carwardine.
CFS has co-operated fully with ASIC’s inquiries and ASIC acknowledges the constructive action taken by Carwardine to address its concerns, the statement said.
