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10-275AD ASIC accepts enforceable undertaking from Professional Investment Services Pty Ltd
ASIC has accepted an Enforceable Undertaking (EU) from financial services provider, Professional Investment Services Pty Ltd (PIS), following concerns over the company’s compliance with financial services laws.
PIS is one of Australia's largest providers of financial services with 1354 authorised representatives providing financial advice to approximately 430,000 clients.
ASIC was concerned that PIS may have failed to comply with its obligations as an Australian financial services licence holder based on the results of surveillances conducted by ASIC.
As part of the EU, PIS has agreed to engage an independent expert to review and make recommendations on its compliance with specific areas addressed in the EU, including:
- arrangements for the management of conflicts of interest;
- significant breach reporting;
- dispute resolution system;
- resources to carry out supervisory arrangements;
- monitoring and supervision of authorised representatives;
- record keeping;
- risk management systems;
- adviser training and competence;
- compliance culture; and
- compliance with s945A of the Corporations Act 2001.
The terms of the EU include provision for PIS to rectify any deficiencies identified by the independent expert over approximately 12 months including the implementation of a compensation process for PIS to compensate clients for any loss suffered arising out of deficiencies identified.
An important aspect of ASIC’s work in assisting and protecting retail investors and consumers is ensuring and promoting compliance by licensees with the financial services laws. The undertakings given in this EU represent a significant commitment by PIS to major compliance improvements and ASIC regards this commitment, and the overhaul it represents, as a positive development for the financial advice industry.