ASIC has concluded an enhanced adviser monitoring program for Professional Investment Services Pty Ltd (PIS), an Australian financial services (AFS) licensee, following an enforceable undertaking (EU) with PIS in December 2010.
The monitoring was to ensure PIS’s compliance with regulatory requirements for personal advice, the effectiveness of its advice audit and pre-vet functions and its remediation of poor advice.
As part of the program, PIS engaged an independent expert to monitor PIS’s compliance and audit function and to report to ASIC each quarter.
The independent expert has reported that PIS has achieved a significant improvement in its compliance and audit functions, along with a commitment to enhancing its financial advice risk management framework.
ASIC acknowledges PIS’s commitment and work undertaken and senior executives’ constructive engagement throughout the process.
Background
In July 2013, ASIC and PIS agreed an independent expert would monitor for nine months the way PIS gave financial advice to ensure its processes meet the standards of the EU (refer 13-178MR).
The expert’s monitoring oversight followed conclusion in March 2012 of an EU ASIC accepted from PIS in December 2010 (refer 10-275AD). ASIC had concerns PIS’s compliance and audit functions required further work.
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