Commonwealth Financial Planning must review client files of 17 more advisers

by |
Commonwealth Financial Planning will be required to review client files of 17 more advisers after a report into its initial review.

ASIC has released KordaMentha Forensic’s second report on past activities by Commonwealth Financial Planning Limited (CFPL) and Financial Wisdom Limited (FWL) to identify advisers deemed high risk and to review and compensate affected customers. While the report found that CFPL and FWL took reasonable steps in 2012 to identify which clients of a group of former advisers should have been included in a compensation program, the report said CFPL and FWL did not have a reasonable basis for the processes used to determine whether a group of the potentially high-risk advisers they identified should have been included in the compensation program.

In light of the finding, CFPL and FWL will have to undertake a review of the client files of 17 advisers to determine whether they should be included in the compensation program. Should any of the clients be found to have lost money due to inappropriate advice, they will be compensated in a process overseen by KordaMentha Forensic.

"KordaMentha Forensic's third report, the Compliance Report, will report in 2016 on its audit of whether CFPL and FWL have complied with their additional AFS licence conditions, including the implementation of advice review and client compensation activities arising from KordaMentha Forensic's first two reports," ASIC said in a statement.

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions