Advisers and licensees could face serious consequences for misuse of restricted terms following ASIC’s s923A crackdown, compliance consultants have warned.
In late June, ASIC issued a clarification explaining that advisers using the terms ‘independently-owned’, ‘non-aligned’ or others of “like import” will now need to meet the criteria set forth in section 923A of the Corporations Act.
Commenting on the clarification, Brett Walker, a former investigator with ASIC predecessor organisation the ASC and director of SMART Compliance, told ifa that ASIC is likely to take non-compliance with the new clarification seriously.
“Obviously ASIC has drawn a line in the sand,” Mr Walker said. “If you fail to comply with s923A there are potential consequences like EU, fines and even banning or loss of licence if ASIC wants to make a statement.
Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.