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
News
- 09:42Only 12% of advice practices have exit plansBy Adrian Flores
- 09:42CIPRs need to account for future mortality rates, study findsBy Adrian Flores
- 09:42Freedom halts selling of life insuranceBy Adrian Flores
- 7 Dec 2018New ASIC deputy chair announcedBy Adrian Flores
- 7 Dec 2018Growth companies fund added to Macquarie WrapBy Adrian Flores
- 7 Dec 2018ASIC makes unique AFSL decision on foreign adviserBy Adrian Flores
- view all
