Privately-owned dealer group MyPlanner has negotiated additional conditions on its AFSL after it was found to be providing poor financial advice and failing to adequately supervise its representatives.
ASIC surveillance found there were MyPlanner advisers who did not make adequate inquiries into clients' relevant circumstances and didn't complete sufficient analysis to determine the suitability of strategies.
ASIC also found advisers failed to clearly define the scope of the advice being provided, and commonly used generic reasons to support that advice.
Further, the regulator determined MyPlanner's pre-vet and audits did not sufficiently identify these issues, deciding the firm failed to take reasonable steps to ensure that its representatives complied with financial services laws and did not carry out satisfactory supervision.
The conditions also apply to MyPlanner Professional Services, a second AFSL that a large number of MyPlanner advisers and staff recently transitioned to.
Both licensees are now required to engage an independent expert to assess, make recommendations and report on the monitoring and supervisory arrangements of the operations, including the current pre-vet and audit programs.
An initial report will be followed by three quarterly reviews of client file audits. The expert will then conduct a final review of the implementation and effectiveness of their recommendations.