ASIC has imposed additional conditions on the Australian financial services licence of Shartru Wealth Management.
The commission says this follows “…a targeted surveillance by ASIC that found Shartru was not adequately monitoring and supervising its representatives.”
It also found that some of Shartru’s financial advice “…failed to meet the best interests duty and related obligations.”
ASIC states the additional licence conditions require Shartru to engage an independent consultant to review and make recommendations on its audit processes.
“The independent consultant must also review a sample of advice, audits, and pre-vets and report on the effectiveness of the improvements made by Shartru,” it says.
…ASIC expects licensees to have adequate audit processes to monitor and supervise their representatives…
The regulator notes that AFS licensees “…are responsible for ensuring their representatives comply with financial services laws. ASIC expects licensees to have adequate audit processes to monitor and supervise their representatives.”
It adds that AFS licensees “…should conduct sufficient periodic audits of their advisers and use suitably qualified staff to conduct these audits.”
As background ASIC says the licence conditions “…were imposed by consent following Shartru’s engagement in addressing ASIC’s concerns.”
