ASIC accepts EU from licensee
The corporate regulator has announced it has accepted an enforceable undertaking by a licensee, after one of its representatives was found providing poor advice.
In a statement, ASIC said it has accepted an EU offered by My Adviser Pty Ltd after concerns were raised that the licensee may have failed to comply with certain provisions of the Corporations Act.
One of My Adviser’s corporate authorised representatives, Arion Financial Pty Ltd, was found to have been providing poor and unauthorised advice to clients, including advice allegedly provided by Craig Gore.
The investigation also identified a number of failures by My Adviser in respect of its supervision and monitoring of Arion and some of its other representatives, ASIC said.
My Adviser has offered an EU that acknowledges these concerns and that they are reasonably held by ASIC.
The EU requires My Adviser to repay clients who had transferred any monies to Arion (or certain related entities) following communications with Craig Gore.
The licensee will also engage an independent expert to review a sample of client files of My Adviser's representatives and to then prepare a report.
Further, My Adviser will be expected to prepare a remedial action plan to deal with the recommendations of the expert report.
ASIC said it acknowledges that My Adviser has commenced paying remediation to clients of Arion, with more than $2 million paid to date.
“All licensees must ensure that [their] representatives comply with the best interests obligations and where that doesn't occur, ASIC will look to take action,” ASIC commissioner Greg Tanzer said.
“In this instance, we welcome My Adviser's approach to resolving ASIC's concerns and their ongoing remediation of their clients.”
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