ASIC has hit AFSL Poynter Hargraves Financial Consultants with additional licence conditions, requiring it to remove its sole responsible manager.

"This follows a targeted surveillance by ASIC that found Poynter Hargraves had poor risk controls around conflict management and was not adequately monitoring and supervising its representatives," ASIC said.

"ASIC's surveillance also found that some clients were provided with financial advice that failed to meet the best interests duty and related obligations."

The additional licence conditions require Poynter Hargraves to engage an independent expert to review its audit process, making recommendations about how the firm's auditing and conflict management systems could be improved.

That independent expert must also pre-vet a sample of the financial advice offered through Poynter Hargraves and report on the effectiveness of that advice and any improvements that could be made by the AFSL.

It will also be required to remove its sole responsible manager and appoint one or more responsible managers with the necessary skill and experience.

"ASIC expects licensees to have robust controls in place for managing conflicts of interest and adequate audit processes to monitor and supervise their representatives," the regulator said.

"AFS licensees should conduct sufficient periodic audits of all their advisers and use suitably qualified staff to conduct these audits."