ASIC said Morgans Financial Limited has agreed to the imposition of new licence conditions to appoint an independent compliance consultant to review and evaluate the company's compliance measures. The consultant will report to ASIC and Morgans early next year and provide recommendations on any steps that Morgans should take to ensure its compliance measures are adequate. ASIC said the licence conditions also require Morgans to advise of any recommendations the company does not propose to implement, and to provide reasons for any such decisions.
The conditions come following ASIC's surveillance of the company's compliance identified concerns relating to its arrangements for monitoring and supervising its representatives. ASIC said the concerns followed a number of serious breach incidents in recent years.
"ASIC was also concerned about Morgans' internal controls for the handling of confidential market-sensitive information such as restrictions on staff trading, information barriers and managing conflicts of interest in relation to corporate transactions," the regulator said.
ASIC also acknowledged Morgans' "proactive and cooperative approach" in improving its compliance standards.
ASIC has imposed licence conditions on the AFSL of a finance company following concerns over the company's monitoring of its representatives.