ASIC has imposed additional conditions on the Australian financial services (AFS) licence of Shartru Wealth Management Pty Ltd (Shartru).
This follows a targeted surveillance by ASIC that found Shartru was not adequately monitoring and supervising its representatives. ASIC also found that some of Shartru’s financial advice failed to meet the best interests duty and related obligations.
The additional licence conditions require Shartru to engage an independent consultant to review and make recommendations on its audit processes. The independent consultant must also review a sample of advice, audits, and pre-vets and report on the effectiveness of the improvements made by Shartru.
AFS licensees are responsible for ensuring their representatives comply with financial services laws. ASIC expects licensees to have adequate audit processes to monitor and supervise their representatives. AFS licensees should conduct sufficient periodic audits of their advisers and use suitably qualified staff to conduct these audits.