ASIC updates Morgans’ licence conditions
An independent compliance consultant will monitor, evaluate, and report on Morgans Financial Limited's implementation of recommendations borne out of an independent review of its compliance measures.
The Australian Securities and Investments Commission (ASIC) and the stockbroking and wealth management firm agreed to it after ASIC imposed new licence conditions on Morgans in November last year after finding several breach incidents over recent years.
The review of Morgans' compliance measures, which concluded March this year, made recommendations for bolstering Morgans' arrangements for monitoring and supervising its representatives, handling confidential market-sensitive information and managing conflicts of interest in relation to corporate transactions.
ASIC said Morgans is carrying out an implementation plan and has engaged a consultant to review this.
In a statement, Morgans said implementation would mostly be complete by the end of the year, with many of the actions already in place, while technical systems improvements needed a longer lead time.
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".
ASIC would receive regular progress reports throughout the implementation review, with the consultant's final report due in November 2018. ASIC acknowledged Morgans' cooperative approach to improving its compliance standards.
AUTHOR
Malavika Santhebennur
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
