PIS to be monitored on compliance
One of the largest dealer groups in the country, Professional Investment Services (PIS), will be monitored on compliance for the next nine months, the regulator has announced.
The monitoring program follows the conclusion of the 2010 enforceable undertaking (EU) the Australian Securities and Investments Commission accepted from PIS and will ensure the standards from the EU are met.
ASIC announced the program would test compliance of PIS’ personal advice with regulatory requirements, it’s ability to identify poor advice and the effectiveness of its advice audit and pre-vet functions, ASIC announced.
PIS is one of Australia’s largest financial planning firms and currently has 527 advisers working under its licence.
“ASIC recognises the positive response of PIS to the concerns identified and we encourage all financial services licensees to undertake robust testing of their processes to ensure consumers get high-quality advice,” said ASIC deputy chairman, Peter Kell.
“ASIC is focused on ensuring advisers do the right thing, so we will require further compliance reviews if we have concerns that advice standards are not consistently at appropriate levels.”
The regulator has acknowledged the work done by PIS as a result of the EU, stating the monitoring program would provide an opportunity to assess “whether the implementation of the recommendations at the EU’s conclusion have been effective”.
Following ASIC’s announcement, PIS’ parent company Centrepoint Alliance released a statement announcing a new executive team and claiming its wealth business made good progress in the lead up to the Future of Financial Advice reforms and in conjunction with the EU.
“This progress includes changing the culture, improving the training, and enhancing the systems and processes to improve the quality of advice provided to our clients and further strengthen our compliance capabilities,” the group stated.
“Our focus is on a more client and customer-centric approach drawing on proven capabilities across our businesses and we are also investing in new capabilities to deliver solutions for our end customers to drive our long term growth.”
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