ASIC seeks clarification on AXA documents
AXAAsia Pacific subsidiary, NMMT, has given an enforceable undertaking to theAustralian Securities and Investments Commission(ASIC) after its failure in lodging a rollover prospectus.
NMMT, which holds a dealers’ licence and is the responsible entity of Summit Cash Management Trust, has undertaken to engage an external independent compliance consultant to review and report on the adequacy of procedures, processes and training currently in place relating to the lodgement of documents with ASIC.
Originally NNMT told the regulator it had failed to lodge a rollover prospectus for December 2001, which led ASIC to investigate and find other instances in which NMMT had contravened its requirements in relation to lodging prospectuses, supplementary prospectuses and replacement prospectuses.
As a result, ASIC was concerned NMMT did not have adequate systems in place to ensure meeting obligations when lodging important documents.
As part of the enforceable undertaking, NMMT will have to implement any recommendations made by the compliance consultant, who will conduct reviews by September 2003 and January 2004.
NMMT will also send a letter to all unitholders invested in the Summit Cash Management Trust under the rollover prospectus, informing them of NMMT’s failure to lodge the document with ASIC. The letter will also direct them to a copy of the rollover prospectus available from ASIC for searching and inspection.
ASIC director of enforcement Mark Steward says that lodging documents with ASIC, especially prospectuses, is an important procedure.
“It is designed to facilitate proper scrutiny of the offer and to ensure a copy of the prospectus remains available to interested people. This undertaking will ensure NMMT’s systems are overhauled in this respect,” Steward says.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
