ASIC imposes conditions on Sydney licensee
The corporate regulator has handed down additional conditions on a Sydney-based AFSL amid concerns about its compliance framework.
ASIC said in a statement that it was concerned about how Kaz Capital monitors its advisers and whether it meets its compliance obligations under the Corporations Act.
As a result of ASIC’s enquiries, Kaz engaged an external consultant to review its compliance framework and provide recommendations for remediation.
Further, Kaz has advised ASIC that these recommendations have been implemented.
The additional licence conditions imposed by ASIC will require Kaz to appoint an independent expert to review the effectiveness of Kaz's implementation of the recommendations ensuring they have been implemented in full, are operating effectively and whether any further action is necessary.
“Licensees must have an adequate and appropriate compliance framework to govern the monitoring and supervision of their representatives,” said ASIC commissioner Cathie Armour.
“We expect all licensees to comply with this and will monitor their compliance closely.”
The independent expert will report to both ASIC and Kaz in June 2019.
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