ASIC deputy chair Peter Kell has identified a lack of due diligence around third party compliance consultants and research providers as a “key risk” for licensees and advisers.
Speaking at the Association of Financial Advisers conference at the Gold Coast, Mr Kell said it is important for advice providers to understand the “nature and limitations” of third parties.
“This has come up quite a bit in our recent surveillance work … it is too often a source of problems for licensees,” he said.
“It should be obvious that you can't outsource your compliance [completely],” said Mr Kell.
He also stressed the importance of doing due diligence on new authorised representatives.
Mr Kell pointed out that advisers will be more likely to fail the best interests test if they dispense “cookie cutter” advice.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Apr 2018Govt launches new corporate criminal crackdownBy Reporter
- 20 Apr 2018AMP CEO retires immediatelyBy Reporter
- 19 Apr 2018Commission questions compulsory FPA membershipBy Killian Plastow
- 19 Apr 2018CBA admits to fresh FOFA breachesBy Reporter
- 18 Apr 2018Royal commission villains could face jailBy Aleks Vickovich
- 18 Apr 2018CBA accused of ‘misleading’ royal commissionBy Aleks Vickovich and Killian Plastow
- view all