The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking from WealthSure and WealthSure Financial Services, as well as its managing director, Darren Pawski.
The EU comes after the regulator reviewed the dealer group's compliance systems and found recurring deficiencies and a so-called 'lite-touch' approach to compliance.
"ASIC is concerned that WealthSure's commitment to compliance is inadequate," the regulator said in a media statement. "This has resulted in a business culture that has not given sufficient priortity to risk management, with consequent detrimental outcomes for consumers."
Furthermore, ASIC found the dealer group's former CEO and current managing director Darren Pawski was instrumental in WealthSure's "multiple compliance failures". Under his EU, Pawski agreed to step down from his role as managing director.
He will permanently refrain from providing financial services, take part in WealthSure’s management or have any key involvement with an Australian Financial Services Licensee.
The regulator noted WealthSure and Pawski fully cooperated and worked constructively with ASIC during this investigation.
WealthSure’s “lite-touch” to compliance, ASIC said, resulted in a failure to review the advice provided by its financial planners; failure to properly monitor its authorised representatives or identify poor or non-compliant advice.
However, the WA-based dealer group has acknowledged ASIC’s concerns and made significant progress in the lasts six months.
This includes appointing qualified and experienced staff to key positions, including the appointment of former Plan B executive David Newman as new CEO.
The group also engaged external compliance consultants to assist in the review of its functions.
