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Screenshot of a breaking news alert e-mail from Q2 2017
The Australian Securities & Investments Commission (ASIC) has shown its rigid approach to the firms it regulates again, with the latest Australian Financial Services (AFS) licensee to feel this rigidity being Advamode Financial Pty Ltd (Advamode).
Advamode offers a raft of financial services to Australian customers, including online trading with CFDs and Forex instruments.
The regulator has decided to impose additional conditions to Advamode’s licence amid concerns raised by ASIC surveillance.
- ensure that financial services were provided efficiently, honestly and fairly;
- demonstrate adequate financial resources were available to provide financial services and carry out supervisory arrangements;
- have adequate arrangements for the management of conflicts of interest;
- demonstrate adequate research and inquiry had been undertaken in to financial products.
‘Licensees must have systems in place manage conflicts of interest, and have the resources to provide efficient, honest and fair financial services. This goes to the heart of maintaining consumer and investor trust and confidence in the financial services industry,’ ASIC Deputy Chair Peter Kell said.
‘The imposing of licence conditions on Advamode shows ASIC won’t hesitate to act to ensure standards are maintained across the industry.’
The company will have to appoint a compliance expert, approved by ASIC, to review its business, including all policies and processes relevant to each of the above stated ASIC’s concern. Advamode will also have to implement any remedial actions that the compliance expert recommends.
Advamode has agreed to the imposition of the AFS licence conditions.
To view the official announcement by ASIC, click here.