ASIC reviews annual compliance certificates of Australian credit licensees
The Australian Securities and Investments Commission (ASIC) is undertaking a compliance program to assess the information lodged by Australian credit licensees (ACLs) in their annual compliance certificates.
Under current regulations, holders of an ACL are required to lodge an annual compliance certificate with ASIC within 45 days of the anniversary date of obtaining their licence, the regulator stated.
As part of the compliance program, ASIC will be checking the information provided by licensees in their annual certificates to ensure that they are acting in accordance with their obligations.
ASIC stated that the information would also be used to determine a licensee's business activities, the amount of money held in trust and the annual fee payable by licence holders.
Between 1 April and 30 June 2012, ASIC will contact ACL holders and subsequently discuss with them the results of the compliance program. Further information may be issued to the industry on any key problems that arise, ASIC stated.
ASIC commissioner Greg Tanzer said the integrity of information lodged by ACL holders was instrumental in achieving efficient registration and licensing processes.
He said that this information was critical in ensuring that the activities of licensees were conducted appropriately and that there were relevant programs in place to identify non-compliance.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.