ASIC hands insurance provider strict compliance conditions
Sydney-based insurance group, Australian Life Insurance Distribution (ALI Group), will be required to adhere to additional compliance conditions after the Australian Securities and Investments Commission (ASIC) found the company had failed to comply with several obligations of its Australian financial services license (AFSL).
Following an internal review, ALI Group reported to ASIC in December 2011 that since being granted an AFSL in April 2003, it had failed to notify the regulator of the appointment of all authorised representatives, failed to include the relevant authorised representative's details on ALI Group's financial services guides, and engaged in activities not sanctioned by the terms of its AFSL.
As part of its compliance conditions, an external compliance consultant will need to regularly report to ASIC until 30 June 2013.
The consultant will notify ASIC on matters pertaining to, but not limited to, the number of authorised representatives appointed at ALI Group and the number of insurance policy application submitted by authorised representatives.
"Confidence in the financial services industry depends on licensees having robust compliance procedures in place, supported by appropriate competencies, resources and a culture of compliance," ASIC commissioner Peter Kell said.
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