The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from PGW Financial Services.
ASIC said it found “deficiencies in its advice to clients and arrangements for supervising its authorised representatives” after the firm hired several ex-representatives of AAA Financial Intelligence and AAA Shares, both of which had their licences cancelled.
ASIC said there were several instances where PGW did not disclose its reasons for switching products or prove reasonable basis for their recommendations.
The regulator also had concerns about PGW’s failure to properly update their clients with financial records.
PGW said it would agree to a supervision regime for at least 15 months and reform parts of the business deemed deficient by the regulator.
