ASIC imposes EU on advice firm linked to Trio
A financial services firm that advised clients to switch their superannuation into a Trio Capital fund has had an enforceable undertaking (EU) imposed on it by the regulator to improve its compliance.
The Australian Securities and Investments Commission (ASIC) found Corowa-based firm Kilara Financial Solutions recommended clients switch their superannuation into the My Retirement Plan fund, for which Trio was the responsible entity.
My Retirement Plan would then invest into two managed investment schemes managed by Kilara, namely My Income Pool and My Growth Pool.
From October 2006 to June 2008, Kilara is said to have recommended clients switch their superannuation without considering clients’ existing super and without consideration of the risk tolerance or goals of some clients.
ASIC also found Kilara systematically provided defective Statements of Advice (SOAs), and also failed to provide a SOA when advice was provided on a time-critical basis in two instances.
The EU sets out how Kilara intends to rectify these issues and how it will focus on its compliance program to address any shortfalls.
The compliance program will be reviewed together with the ongoing operations during the next 13 months.
Kilara will also write to relevant clients who were adversely impacted by the advice given, and invite them to request that Kilara conduct a review of compliance as required by law.
Any complaints will be resolved by an internal complaint resolution approach, or failing this, by the Financial Ombudsman Service.
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