Authorised Representative Reviews
This service comes as a result of ASIC’s recent increased surveillance of licensees and in particular the monitoring and supervision of authorised representatives.
The service can be modified to suit each licensee, but in essence MDS will visit the adviser, obtain copies of three SOA’s, risk profiles, Fact Finds, and conduct a number of checks on their advice. MDS will also review adviser training and complaints registers. A report will then be written and forwarded to the compliance manager for review, follow up and filing.
Points to be covered will include those areas targeted by the ASIC during their recent survey on the top twenty AFSL holders, namely:
- the management of conflicts of interest relating to advice provided to clients to switch their investments to financial products associated with and / or related to the licensee;
- meeting the requirements of a compliant dispute resolution system;
- the monitoring and supervision of staff and representatives;
- compliance with the requirements of s945A of the Corporations Act 2001 (“the Act”) – the requirement to have a reasonable basis for advice provided to clients; and
- compliance with s947D of the Act – the requirements when advice recommends replacement of one financial product with another.
