ASIC updates Morgans’ licence conditions
An independent compliance consultant will monitor, evaluate, and report on Morgans Financial Limited's implementation of recommendations borne out of an independent review of its compliance measures.
The Australian Securities and Investments Commission (ASIC) and the stockbroking and wealth management firm agreed to it after ASIC imposed new licence conditions on Morgans in November last year after finding several breach incidents over recent years.
The review of Morgans' compliance measures, which concluded March this year, made recommendations for bolstering Morgans' arrangements for monitoring and supervising its representatives, handling confidential market-sensitive information and managing conflicts of interest in relation to corporate transactions.
ASIC said Morgans is carrying out an implementation plan and has engaged a consultant to review this.
In a statement, Morgans said implementation would mostly be complete by the end of the year, with many of the actions already in place, while technical systems improvements needed a longer lead time.
ASIC commissioner, Cathie Armour, said: "All market participants must ensure they maintain adequate monitoring and supervision arrangements. In addition firms must have robust controls pertaining to the proper handling of confidential information and management of conflicts of interest".
ASIC would receive regular progress reports throughout the implementation review, with the consultant's final report due in November 2018. ASIC acknowledged Morgans' cooperative approach to improving its compliance standards.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial managing director, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.
