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14-101MR ASIC accepts enforceable undertaking from LCL Capital Pty Ltd
ASIC has accepted an enforceable undertaking (EU) from LCL Capital Pty Ltd (LCL Capital) after an investigation found deficiencies in the way they monitored and supervised their authorised financial adviser representatives.
ASIC’s investigation into the Queensland-based financial services firm came after a review of the advice provided by one of its authorised representatives, Mr Timothy Bryce, who previously worked for Sherwin Financial Planners Pty Ltd.
ASIC’s concerns related to alleged failures to:
ensure that financial services were provided efficiently, honestly and fairly
take reasonable steps to ensure that authorised representatives complied with financial services law
demonstrate adequate resources were available to provide financial services and carry out supervisory arrangements, and
ensure that authorised representatives were adequately trained and competent to provide financial services.
Deputy Chairman Peter Kell said, ‘Licensees must have adequate systems in place to ensure they are fully across the actions of their representatives’.
Under the EU, LCL Capital will submit to a regime of supervision, review and audit of their authorised representatives by an ASIC approved, independent senior financial planning expert, for a period of at least 15 months.
This will incorporate the implementation and review of any remedial action plans that are developed to resolve any deficiencies identified by the independent expert.
ASIC acknowledges LCL Capital’s cooperation with ASIC throughout its investigation.
Editor's note 1:
ASIC confirms the EU entered into by LCL Capital has been finalised.
As a result of the EU, LCL Capital has made changes to its compliance and advice review processes that operate when its representatives are providing financial product advice to retail clients. The independent expert has confirmed the satisfactory implementation of these processes.
In September 2015, some outstanding concerns identified by the independent expert triggered an extension of the EU for a further six months.
ASIC acknowledges the positive approach taken by LCL Capital during the course of the EU and its commitment to completing necessary improvements. As a result of these improvements, the EU was finalised in March 2016 and ASIC assessed that no further action is required.