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Screenshot of a breaking news alert e-mail from Q2 2017
ASIC has negotiated the imposition of additional conditions on the Australian financial services (AFS) license of MyPlanner Australia Pty Ltd (MyPlanner) after they found MyPlanner was giving poor financial advice, and lacked adequate monitoring and supervision of its representatives.
As a large number of representatives and staff recently moved to a second AFS licence, MyPlanner Professional Services Pty Ltd (MyPlanner Professional), the additional conditions also apply to the AFS licence of MyPlanner Professional.
The conditions require both licensees to engage an independent expert to assess, make recommendations and report on the monitoring and supervisory arrangements of the licensees, including the current pre-vet and audit programs. The initial report will be followed by three, quarterly reviews of client file audits. Following this, the expert will conduct a final review of the licensees’ implementation and effectiveness of the recommendations.
ASIC’s surveillance found that some MyPlanner advisers had not undertaken adequate inquiries into clients’ relevant 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, MyPlanner’s pre-vet and audits did not sufficiently identify these issues.
As a result, ASIC found that MyPlanner 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 MyPlanner in connection with the surveillance. ASIC also acknowledges MyPlanner and MyPlanner Professional have taken active steps to address ASIC’s concerns.