Dealer groups outsourcing compliance
Licensed dealers and life brokers are outsourcing their compliance to external consultants to cope with the increasing complexity of financial services regulations and standards.
Adviser Solutions director Jacqui Stewart says compliance has become a function that small to medium dealer groups find is more expedient to outsource to a third party.
"The trend that we're observing is that whereas compliance was traditionally considered an in-house function, now with so many more requirements added by industry organisations, the small to medium dealer groups are finding it easier to outsource this function."
She says Adviser Solutions has about 30 different groups currently on its books to receive compliance services. The groups range from sole practitioners to a company with 35 representatives.
The compliance duties that Adviser Solutions take out of the dealer group's hands are support in undertaking surveillance audits on their representatives, developing and implementing internal programs and training on compliance issues.
"Ultimately, our clients would prefer us to be auditing their licensees' procedures than ASIC," Stewart says.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
