ASIC surveillance of a Melbourne based financial planning business will extend to an independent review of its compliance arrangements.
Record keeping, supervision and other compliance arrangements of Melbourne-based Allied Financial Solutions are the subject of an independent external review after ASIC found concerns in the firm's record keeping and compliance procedures.
The regulator found Allied had failed to keep records of advice provided by one of its representatives, and did not adequately supervise the same representative. According to ASIC, upon review of Allied's documentation, the regulator was concerned with the adequacy of compliance processes and procedures at the firm.
ASIC also found that as part of the lax supervision of the representative, Allied failed to conduct advice audits.
The independent review was agreed to by Allied, with an independent expert to make recommendations over the firm's compliance with relevant financial services laws. Reporting to ASIC and Allied, the independent expert will additionally assess whether the recommendations were implemented successfully by the firm.
ASIC added the representative at the centre of the investigations into Allied was the only external authorised representative, and is no longer with the firm.
The review follows ASIC banning former AMP advisor Desmond Luplau last week from provisioning financial services for five years, after he failed to act in the best interests of clients.