Securities dealer scales down operations following ASIC review
A Queensland-based securities dealer has volunteered to wind back its operations after an Australian Securities and Investments Commission (ASIC) review found the company had breached conditions of its Australian financial services licence.
Prior to the regulator's findings, Clearing and Settlement Services (CSS) promoted a range of investment education and financial markets trading and modeling tools to investors via a network of authorised representatives across Queensland, New South Wales and Victoria.
In 2012, ASIC found the dealer had provided services outside those authorised under the AFSL. The regulator was particularly concerned in relation to the level of supervision and monitoring of CSS's corporate and individual authorised representatives.
ASIC also pointed to other issues pertaining to assessment and reporting processes; complaints assessment and handling; and the lodgement of statutory forms.
CSS has since revoked the authorisations for all but one of its representatives.
The former representatives included those who had moved from licencees against whom ASIC had taken action, including Romad Financial Services and International Securities and Derivatives Group.
"Licensees who sublet their licence must have in place adequate compliance and governance standards," ASIC deputy chairman Belinda Gibson said.
"This includes being responsible for the conduct of representatives they appoint."
Gibson said the monitoring of securities dealers is "very much on our radar" going forward.
Recommended for you
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
