ASIC has accepted an enforceable undertaking (EU) from a Sydney-based financial group which provided direct property investment advice, among other services.
Following an investigation, ASIC became concerned about the level of monitoring and supervision of the representatives the company, Spring Financial Group Pty Ltd (Spring Financial), appointed.
Under the EU, Spring Financial must appoint an independent consultant to review its business and develop a plan to rectify the deficiencies. The independent expert will report regularly to ASIC over the next year on the company’s implementation of the plan.
The EU follows ASIC’s on-going investigation into Royale Capital Pty Ltd (Royale), an authorised representative of Spring Financial between October 2011 and June 2012 and other businesses.
ASIC’s investigation into Spring Financial found deficiencies in the group’s compliance measures, including:
Monitoring and supervision of authorised representatives activities to ensure compliance with the financial services law, and
Insufficient training processes and education of authorised representatives.
“ASIC is continuing to closely scrutinise licensees’ obligations to demonstrate adequate monitoring and supervision and will not hesitate to take action where we find those practices deficient,’ says ASIC acting chairman, Greg Tanzer.
ASIC acknowledges Spring Financial’s cooperation in the matter.
A trial date of October 14, 2013 has been set for ASIC’s civil case against a group of individuals and businesses, including Royale, ActiveSuper Pty Ltd, and Craig Gore and his wife Marina Gore, who allegedly used money invested by self-managed super funds for purposes other than which it was intended. The matter will be heard in the Queensland Registry of the Federal Court of Australia.