ASIC imposes extra conditions on AFS license of Kaz Capital amid compliance concerns
The additional licence conditions will require Kaz to appoint an independent expert to review the effectiveness of Kaz’s implementation of the recommendations.
The Australian Securities & Investments Commission (ASIC) has imposed additional conditions the Australian Financial Services licence of Kaz Capital Pty Ltd, a company whose services range from investment advisory to wholesale investing in precious metals.
The Australian regulator explains that it is concerned about the adequacy and effectiveness of Kaz’s compliance framework, including how it monitors its advisers and whether it meets its compliance obligations under the Corporations Act.
Following ASIC’s enquiries, Kaz engaged an external consultant to review its compliance framework and provide recommendations for remediation. Kaz has advised ASIC that these recommendations have been implemented.
The additional licence conditions imposed by ASIC will require Kaz to appoint an independent expert to review the effectiveness of Kaz’s implementation of the recommendations ensuring they have been implemented in full, are operating effectively and whether any further action is necessary. The independent expert will report to both ASIC and Kaz in June 2019.
ASIC Commissioner Cathie Armour said ‘Licensees must have an adequate and appropriate compliance framework to govern the monitoring and supervision of their representatives. We expect all licensees to comply with this and will monitor their compliance closely.’
The Australian regulator has been monitoring closely how AFS licensees comply with the law and has been taking action if necessary. Earlier this week, ASIC announced that it had suspended the AFS license of Halifax Investment Services. The suspension follows the appointment of Morgan Kelly, Stewart McCallum and Phil Quinlan, of Ferrier Hodgson, as joint voluntary administrators of Halifax in November 2018.