The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from financial services licensee AIW Dealer Services to conduct an independent review of its advice processes.
ASIC found that AIW’s representative, Otium Advice, had used a ‘one size fits all’ advice model and advised its clients to switch superannuation funds when it was inappropriate to do so.
Also, the firm had failed to demonstrate the ability, professional skills and knowledge required to competently provide financial product advice.
The corporate regulator said it was concerned that AIW may have failed to take reasonable steps to ensure that its representatives would comply with financial services laws as well as whether it had available adequate resources to provide financial services in order to carry out supervisory arrangements.
According to the EU, AIW acknowledged that these concerns were reasonable and would engage expert to assess and report on the effectiveness of its policies and procedures.
At the same time, ASIC said AIW’s cooperation in connection with the surveillance had been acknowledged.