The Australian Securities and Investments Commission (ASIC) has imposed additional conditions on the Australian financial services licence (AFSL) of Kaz Capital, following concern from the regulator on the adequacy and effectiveness of the company’s compliance framework.
ASIC pointed to how the framework monitored Kaz’s advisers and whether it met its compliance obligations under the Corporations Act as areas of possible issue. Kaz had hired an external consultant to review its compliance framework and provide recommendations for remediation following previous enquiries from ASIC, saying it had implemented these suggestions.
The regulator wanted Kaz to go further than this, with the additional conditions requiring the company appoint an independent expert to review the effectiveness of its implementation of the above recommendations. The expert would also determine if more action was necessary, reporting to both Kaz and ASIC in June, this year.
Commenting on the order from ASIC, ASIC Commissioner, Cathie Armour said: “Licensees must have an adequate and appropriate compliance framework to govern the monitoring and supervision of their representatives. We expect all licensees to comply with this and will monitor their compliance closely”.