As part of those conditions, Sentinel is now required to appoint an independent compliance consultant to review its overall compliance arrangements, according to a statement by ASIC.
An independent review of the financial planning firm – commissioned by Sentinel – found compliance issues, including “having inadequate measures to manage their risks and effectively monitor and supervise its staff,” ASIC said.
As a result of the review, Sentinel has appointed a dedicated compliance officer and enhanced its policies and procedures, the statement said.
To ensure the company has adequately responded to the deficiencies identified, ASIC now requires the independent compliance consultant to consider Sentinel’s response to the findings and recommendations in the original compliance report.
In addition, the consultant will assess the adequacy and sample test Sentinel’s new policies and procedures.
The consultant will report the findings to ASIC. Sentinel will be required to address any deficiencies identified by the review, the statement said.
Why dont we just have a system where ASIC provide an individual to audit every AFSL holder in the country (instead of our internal people) and ASIC look at say 5 files per advisers, at a cost of $500 per file, against a publicly available set of compliance criteria.
Basic outcome criteria (i.e. a rating from 1-5) with 1 being great, 2 being good, 3 being ok, 4 being needs improvement with minor actions to implement and next audit in 6 months instead of next year and 5 being serious problems and action plan and quarterly audits until problems solved.
This way all firms would be looked at every year. This would fund itself from ASIC’s perspective (fees would cover cost).
Firms would be more likely to toe the line knowing ASIC was looking, not some internal softie.
Nothing to hide = nothing to fear.
Just an off teh cuff idea…
[quote name=”Steve Compliance”]Being a compliance professional I am all for these so called “bully tactics” my biggest critcism is it is too easy to get an AFSL and half our problems in the industry are by AFSL holders not following their obligations of Supervising and monitoring their represenatives. There are too many offering Authorised Rep Certificates with no checks and balances or ongoing supervision. More will follow there is no hidden agenda its just ASIC are deprived of resources to weed the bad ones outquicker.[/quote]
If there’s no hidden agenda Steve Compliance, can you explain why ASIC handpicked the data from the life offices they did, completely overexaggerated the so-called non-compliance of advisers and then released it all to the public and media.
I back 98% of the advisers out there to do the right thing and provide the right advice for the clients best interest.
The onerous compliance obligations ASIC has created from that tainted review has made it almost impossible for an adviser to go out and see a client these days let alone keep up with all the BS checklist requirements.
A licensee that undertook their own review found shortfalls.
Has everyone out their looked at themselves and can they honestly say they have now problems if ASIC knocked on their doors.
Large institutions have a large number of representative and a easy mark for ASIC but in the end it was just a few that caused the problems. They are just working their way down from top to bottom. Big problems = big news…
Sentinel are trying to get their house in order and should be commended for taking the initiative and then putting their had up to say we have a problem.
“It is time to ask, is our industry under undue scrutiny by ASIC?”
I don’t know about the details of these cases, because ASIC never gives real details to the public in these announcements. So who knows what is going on?
I have heard of other practitioners and crooked dealer groups getting off with a private warning (or three) and ASIC are happy to ignore (or not share the outcome of investigations to the public) whilst going hard on these other groups by issuing these statements and rulings. No transparency, no consistency.
Being a compliance professional I am all for these so called “bully tactics” my biggest critcism is it is too easy to get an AFSL and half our problems in the industry are by AFSL holders not following their obligations of Supervising and monitoring their represenatives. There are too many offering Authorised Rep Certificates with no checks and balances or ongoing supervision. More will follow there is no hidden agenda its just ASIC are deprived of resources to weed the bad ones outquicker.
[quote name=”mary kehely”]I am not surprised, about this happening[/quote]
I gave you a thumbs down on this Mary but I’m now thinking I should have asked for clarification of your thoughts first. Can I ask why you aren’t surprised?
Is it that ASIC’s done this or that this firm has done what its apparently done?
Good luck with that. I know of a previous AFSL that has now folded that went through that process. Cost them best part of a $1m !!
While I am definitely an advocate for increasing the professional standards in our industry, and am not aiming to make this an ‘us versus them’ situation but merely an example, I have seen a number of accounting firms that have had abysmal policies and procedures, poor ongoing or even basic education of their accounting staff, which would have been to the substantial detriment of clients, and yet no Gov organisation imposes these strict conditions on them, likewise the legal profession. It is time to ask, is our industry under undue scrutiny by ASIC?
A look at their website should have been enough for a fine, seeing as half of it is in another language…
“having inadequate measures to manager their risks and effectively monitor and supervise its staff”
Seems to me ASIC (i.e. Peter Kell and his left wing cronies) are doing anything they can to undermine the operations of planners these days.
I’m so sick of reading these ‘*** Breaking News ***” stories everyday about ASIC’s so-called achievements.
They’re just a bunch of school yard bullies beating up people trying to make a difference out there, for their own agenda in my opinion.
I am not surprised, about this happening