ASIC warning to licensees: Be wary of dodgy recruits

by AB07 May 2013

ASIC has issued a warning to financial services licensees, asking them to ensure they have ‘robust’ recruitment processes in place when appointing representatives who have worked for a business ASIC has taken action against – but this can be an issue for mortgage brokers, according to Gadens partner, Jon Denovan.

In the original release, ASIC Deputy Chairman, Peter Kell, says the warning follows recent ASIC action against licensees, including financial advisers and securities dealers, with ASIC becoming aware many of their representatives have moved to new licensees.

“More broadly, we are seeing significant industry restructuring at present and it is vital that recruitment standards are high in such an environment,” says Kell.

But Denovan says this can be difficult in the mortgage broking industry, particularly when brokers are switching aggregators.

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  • by SIDBROKER 7/05/2013 2:04:17 PM

    Why would any broker risk new comers when they are responsible and potentially liable for them.