ASIC imposes additional conditions on Advamode
The Australian Securities and Investments Commission (ASIC) has imposed additional conditions on the Australian Financial Services Licence (AFSL) of Queensland-based financial service, Advamode Financial Pty.
ASIC said the conditions were imposed following an investigation which identified concerns over the firm's ability to effectively carry out its supervisory requirements.
The regulator said it was concerns about Advamode's ability to:
- Ensure that financial services were provided efficiently, honestly and fairly;
- Demonstrate adequate financial resources were available to provide financial services and carry out supervisory arrangements;
- Have adequate arrangements for the management of conflicts of interest; and
- Demonstrate adequate research and inquiry had been undertaken into financial products.
ASIC deputy chair, Peter Kell, said AFSLs needed to ensure they had systems in place to manage conflicts of interest and have the resources to provide efficient, honest and fair financial services.
"This goes to the heart of maintaining consumer and investor trust and confidence in the financial services industry," he said.
"The imposing of license conditions on Advamode shows ASIC won't hesitate to act to ensure standards are maintained across the industry."
In a statement, ASIC noted that Advamode consented to the imposition of the AFSL conditions.
Recommended for you
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Over half of wealth management clients in Asia-Pacific say they are looking for more advice in investment and financial planning services, according to EY, and may switch or add new providers to achieve this.
As artificial intelligence continues to reshape how the advice industry operates, Adviser Ratings unpacks which areas advisers are using the technology to improve the client experience.
Insignia Financial has appointed the former APAC head of a global asset manager to its board.
