Planning group appoints expert after ASIC visit
Financial planning group Anne Street Partners (ASP) has appointed an independent expert to assist the group and in a separate action will also wind up the last legacy mortgage fund held by the group from its former owners.
Following concerns raised the Australian Securities and Investments Commission (ASIC), ASP has signed an independent expert for a period of 12 months and also put all its' staff through mandatory self-managed superannuation funds training.
The appointment follows an agreement by ASP and ASIC after the latter raised concerns about the appropriateness of SMSF advice, the management of conflict of interests and the supervision of authorised representatives following an industry-wide surveillance initiative conducted by ASIC earlier this year.
ASP said it was committed to partnering with ASIC at every opportunity to ensure all the concerns from its surveillance were addressed and all improvements were implemented quickly and transparently. ASP stated its view of the changes requested by ASIC is they will ultimately strengthen its organisation and deliver increased value to its clients.
Following the introduction of the Future of Financial Advice (FOFA) reforms and the advent of the Priority Conflict Rule, ASIC has prescribed that planners must be able to demonstrate that 'additional benefits' flow to clients when utilising the services of related parties.
ASP group chief executive Michael Adamson said his group was of the view "that through affiliation and strong working relationships with its related party associates, it is able to demonstrably meet that requirement, in part through a one-stop experience."
Adamson said the group would continue to focus solely on its vertically integrated financial planning, mortgage broking, realty, tax, SMSF and estate planning businesses going forward but still had to wrap up the remaining mortgage fund.
ASP was previously known as Wright Patton Shakespeare (WPS) before being sold to UK based Mayfair Limited and was also close to wrapping up the last WPS mortgage fund held by the group. Unit holders in the fund are due to meet on November 4 to vote to wrap up the fund.
Adamson said ASP had successfully sold down the fund's real estate assets with the remaining assets of the fund held as units in the Pacific First Mortgage Fund and cash with meeting to authorise the distribution of those remaining assets.
According to Adamson if the closure is approved the total return to members through capital repayments and distributions will be $0.91 with members not missing a monthly distribution payment since ASP was acquired by Mayfair Limited.
"The mortgage fund business is not a core focus for the group and the acquisition of the controlling entity of the fund in 2009 was a magnanimous gesture that provided the opportunity to manage an effective workout to maximise the outcome for members of the fund," Adamson said.
AUTHOR
Jason Spits
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
