12-215MR ASIC imposes conditions on Addwealth Financial Services
Wednesday 5 September 2012
ASIC has imposed additional conditions on the Australian financial services (AFS) licence of West Australian-based Addwealth Financial Services Pty Ltd (Addwealth FS) after a surveillance of its advice business.
ASIC is concerned that Addwealth FS may have failed to provide advice that was appropriate to certain clients in light of their circumstances. ASIC is also concerned that Addwealth FS may have failed to have in place adequate arrangements for the management of conflicts of interest.
As part of its conditions, Addwealth FS has appointed an external compliance consultant who will regularly report to ASIC over the next 15 months. The consultant will test and report on matters including Addwealth FS' overall compliance arrangements and the quality of financial product advice provided to its clients. This includes the advice given with respect to their investment in the Addwealth Achiever Fund.
ASIC Commissioner Peter Kell said ASIC will seek the imposition of more onerous licence conditions and independent oversight where there are concerns advice may not be meeting required standards.
ASIC acknowledges that Addwealth FS agreed to the appointment of the consultant to identify and address their compliance issues.
Addwealth FS provides advice on products and services including retirement planning and strategies, superannuation and rollovers (including strategies), self-managed superannuation, share market investments and managed funds.