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Screenshot of a breaking news alert e-mail from Q2 2017
ASIC just announced that has accepted an enforceable undertaking (EU) from Sentinel Private Wealth Pty Ltd (SPW) after ASIC found SPW was giving poor financial advice and that client file audits were inadequate.
Under the EU, SPW will engage an independent expert to assess, make recommendations and report on SPW’s audit framework. The independent expert’s work will include a review of SPW’s policies and procedures followed by ongoing reviews of its client file audits for approximately 18 months.
The EU follows an ASIC surveillance of SPW’s business, which was prompted by actions taken against two of its financial advisers.
ASIC’s surveillance found that SPW advisers had not completed adequate inquiries into clients’ circumstances, had not completed sufficient analysis to determine the suitability of strategies, had not clearly defined the scope of advice, and had used generic reasons to support advice. Further, SPW’s audits did not sufficiently identify these issues.
As a result, ASIC is concerned that SPW may have failed to take reasonable steps to ensure that its representatives complied with financial services laws and failed to carry out adequate supervisory arrangements.
ASIC acknowledges the assistance and cooperation of SPW in connection with the surveillance. ASIC also acknowledges SPW has taken voluntary steps to address ASIC’s concerns.