An advice group has finalised improvements to its advice processes recommended by an independent expert, following an ASIC investigation that revealed it did not have sufficient resources to carry out its legal obligations as a financial services licence holder.
In a statement, the corporate regulator said Cawardine Financial Services had implemented changes to its processes, including improvements in record keeping and increased compliance monitoring and reporting.
The licensee was directed to make the changes following an independent review of its practices requested by ASIC in December last year, after the regulator’s surveillance identified concerns with Cawardine’s compliance with the best interest duty.
Additionally, ASIC had concerns about Cawardine’s resources to ensure it complied with its licensing obligations and to ensure its representatives were complying with financial services laws.
The regulator confirmed the independent expert commissioned to implement the review was now satisfied Cawardine’s compliance arrangements were adequate to meet its obligations.
Additionally, ASIC announced it had obtained orders from the Queensland Supreme Court to appoint a liquidator to five companies within Benchmark Private Wealth Group as part of an ongoing investigation into the group.
It said it had sought the orders due to solvency concerns about the companies, as well as additional concerns about their management by director Liam Young and a number of transactions the companies had entered into with the Members Alliance Group, a Gold Coast-based firm that went into administration in July last year.
The orders required the liquidator to provide a report to the court within 45 days setting out the financial position of the companies so the court could consider a wind-up of the businesses.
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