ASIC continues compliance clampdown

Compliance technology solutions will assist organisations to be proactive in mitigating risk, avoid misleading advice, and keep the regulator satisfied as compliance and security checks continue, according to regtech solutions provider Red Marker and Kaplan Professional.

Red Marker and Kaplan have called on licensees and organisations to be wary of the Australian Securities and Investments Commission’s (ASIC) focus on non-compliant behaviour and regulatory breaches, and said regtech-based solutions could be utilised by advisers to better protect against unexpected risks.

“Good governance starts with capability and the right set of tools – this is a terrific catalyst for change and encourages the industry to be serious and building a true culture of compliance,” said Red marker chief executive, Matt Symons.

“Regtech creates efficiencies and productivity improvements to manage regulatory obligations in a cost-effective and compliant manner.”

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Kaplan Professional chief executive, Brian Knight said a specific regtech project with Red Marker was also underway, which would enable licensees to identify when to train advisers on risk mitigation.

“It is a learner-driven process enabling continuing education to be delivered when and where it is needed, as an integrated part of an adviser’s role,” he said.

“Advisers are able to detect when they have made a mistake, self-correct and learn as they go.”

Symons said “genuine capability” was in reach for the industry, which should take advantage of the opportunity to innovate risk procedures.

“Those who do not get on board with technology now will be stuck doing things the old way, while others move further ahead,” he said.

“It is a no-brainer to be on the front foot by being able to identify and mitigate risk before the regulator does.”