ASIC has accepted an enforceable undertaking (EU) from an Adelaide-based boutique advice licensee.
The regulator found that PGW Financial Services had deficiencies in its advice to clients and arrangements for supervising its authorised representatives.
ASIC’s surveillance followed PGW’s appointment of a number of ex-representatives of AAA Financial Intelligence Limited and AAA Shares after it’s AFSLs were cancelled by ASIC in February last year.
“'We would expect licensees who take on representatives previously authorised under licensees that have been the subject of ASIC action to be especially prudent, recognising they may have been exposed to a less robust or non-compliant supervisory environment,” ASIC deputy chairman Peter Kell said.
“Licensees must ensure they have appropriate resources and procedures in place when providing financial services to retail clients.”
“These arrangements should be reviewed when licensees rapidly increase their numbers of representatives, particularly where those representatives have come from other licensees.”
In response to ASIC’s concerns, PGW has agreed to “implement a regime of supervision, review and audit” by an ASIC –approved compliance expert for a period of at least 15 months.
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