IFS resolves compliance breaches
Industry Fund Services (IFS) has resolved compliance issues after the Australian Securities and Investments Commission (ASIC) discovered it had been incorrectly investing client funds into an unregistered management investment scheme.
ASIC revealed that IFS had been investing in unregistered schemes on behalf of its members since May 2012, in breach of a class order related to investor directed portfolio-like services provided through a registered managed investment scheme.
IFS identified the breach in November 2013 and raised it with ASIC, which acknowledged the cooperative approach taken by IFS in the matter.
ASIC commissioner, Greg Tanzer stated that IFS had worked with the regulator to rectify the breach, and urged all platform providers to ensure they were compliant were prepared for new class orders, which come into force from 1 July 2014.
"It is important that licensees identify where a technical breach of the law can result in the potential loss of key protection measures for investors," he said.
"IFS acted promptly and in a way that protected members' interests throughout the process, and this highlights our approach to working with entities who report potential breaches to ASIC."
IFS moved client funds to compliant investments in February 2014, and informed affected members about the change to their investment. No loss for members has been identified.
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