Licensed dealers and life brokers are outsourcing their compliance to external consultants to cope with the increasing complexity of financial services regulations and standards.
Adviser Solutions director Jacqui Stewart says compliance has become a function that small to medium dealer groups find is more expedient to outsource to a third party.
“The trend that we’re observing is that whereas compliance was traditionally considered an in-house function, now with so many more requirements added by industry organisations, the small to medium dealer groups are finding it easier to outsource this function.”
She says Adviser Solutions has about 30 different groups currently on its books to receive compliance services. The groups range from sole practitioners to a company with 35 representatives.
The compliance duties that Adviser Solutions take out of the dealer group’s hands are support in undertaking surveillance audits on their representatives, developing and implementing internal programs and training on compliance issues.
“Ultimately, our clients would prefer us to be auditing their licensees’ procedures than ASIC,” Stewart says.
