Queensland-based financial planning firm, Sentinel Private Wealth (SPW) has entered into an enforceable undertaking with the Australian Securities and Investment Commission after a surveillance found it had given poor financial advice and client audit files were inadequate.
The regulator announced today that, under the enforceable undertaken, Sentinel would engage an independent expert to assess, make recommendations and report on SPW’s audit framework.
It said the independent expert’s work would include a review of SPW’s policies and procedures followed by ongoing reviews of its client file audits for approximately 18 months.
The ASIC announcement said the enforceable undertaking had followed an ASIC surveillance of SPW’s business, which was prompted by actions taken against two of its financial advisers.
It said ASIC’s surveillance found that SPW advisers had not completed adequate inquiries into clients’ circumstances, had not completed sufficient analysis to determine the suitability of strategies, had not clearly defined the scope of advice, and had used generic reasons to support advice. Further, SPW’s audits did not sufficiently identify these issues.
As a result, ASIC was concerned that SPW may have failed to take reasonable steps to ensure that its representatives complied with financial services laws and failed to carry out adequate supervisory arrangements.
The announcement said ASIC acknowledged the assistance and cooperation of SPW in connection with the surveillance. ASIC also acknowledged SPW had taken voluntary steps to address ASIC’s concerns.
