Licensees warned on attracting regulatory attention
Financial services licensees have been warned to appropriately meet their compliance obligations if they wish to avoid attracting the attention of the regulators.
Legal practice, The Fold, has used its discussion forum to point out that in the past year alone, the regulator has cancelled eight Australian Financial Services Licences, suspended two licensees, with another seven currently under review.
"With late lodgement attracting fines and failure to lodge leaving you open to criminal and civil penalties, you would be foolish to put off the obligation assuming that ASIC won't chase this information," the law firm said.
It said that despite the cut of $120 million to its budget, ASIC was still working hard in the compliance space.
"With ASIC having the power to also publish the details of licensees who have been suspended or banned from operating, failure to comply not only leaves you financially vulnerable but could also throw your reputation into question," the discussion said.
"Like a red rag to a bull, ASIC sees a failure to lodge as a sign that there may be other circumstances of non-compliance," it said. "To reduce the risk of shirking your responsibilities, make compliance with ASIC reporting time frames a priority and implement strong systems to ensure you meet all requirements."
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.
