Following ASIC’s announcement yesterday that it had updated conditions imposed on the AFS licence of Morgans Financial Limited, the Sydney-based wealth and stockbroking firm has confirmed it has satisfied one of the licence conditions.
In a statement yesterday the firm said, by developing a plan to implement recommendations made in March this year by an independent consultant to enhance compliance across Morgan’s network, the firm has satisfied one of ASIC’s licence conditions imposed back in 2015 and updated by ASIC yesterday.
“Morgans has developed a plan which has been agreed by ASIC, to implement the consultant’s recommendations,” the firm said.
“Implementation will be substantially complete by the end of the year, with a range of immediate actions already in place and technical systems improvements having a longer lead time.
“The consultant will continue to oversee and assess the effectiveness of Morgans’ implementation of the recommendations.”
Back in November 2015, ASIC imposed licence conditions on Morgans following concerns relating to the firms arrangements for monitoring and supervising its authorised representatives after a number of serious breach incidents occurred.
ifa reported yesterday that an independent review, which concluded this March, resulted in further recommendations for: strengthening Morgans' arrangements for monitoring and supervising its representatives; handling confidential market-sensitive information; and managing conflicts of interest in relation to corporate transactions.
Under the updated licence conditions, ASIC will receive regular progress reports throughout the implementation review and the independent consultant will provide a final report in November 2018.
ASIC commissioner Cathie Armour said, "All market participants must ensure they maintain adequate monitoring and supervision arrangements.
“In addition, firms must have robust controls pertaining to the proper handling of confidential information and management of conflicts of interest."
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