The RetireInvest dealer group has been given a clean bill of health by KPMG, removing the enforceable undertaking put in place in February last year by the Australian Securities and Investments Commission (ASIC).
The regulator swooped on the ING owned dealer group after finding the compliance systems and processes inadequate to properly identify, monitor and report breaches of the Corporations Act, Corporations Regulations or its licence conditions.
The ASIC investigation uncovered that some RetireInvest authorised representatives had failed to fully disclose fees, commissions and benefits payable to them so that investors were not fully aware of the incentives which could influence advisers’ recommendations.
Surveillence of the group by the regulator also found some advisers had omitted to obtain all the necessary information to ensure clients were not placed into investments that were inconsistent with the client’s needs, objectives, circumstances or risk profile.
As part of the enforceable undertaking, RetireInvest was required to review and improve its systems with the guidance of independent consultant KPMG.
KPMG has reported that RetireInvest has effectively implemented all the recommendations made by ASIC following a review last year.
RetireInvest general manager George Haramis said the process had changed the culture of the dealer group.
“We have developed a total compliance culture which involves everyone in the group with a clear understanding of their responsibilities and well documented processes for monitoring, reporting and managing compliance issues,” Haramis said.
“As one of Australia’s major national financial planning brands an effective consumer protection regime is essential to fulfilling our customer offering of consistent, quality financial advice across the entire network.”
