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June 20, 2012

AFS licence: failure to notify appointment of authorised representatives

ASIC has announced that it has imposed additional compliance conditions on Australian Life Insurance Distribution Pty Ltd (ALI Group), for failing to comply with a number of its obligations as an Australian financial services (AFS) licensee.

The obligations are summarised in INFO 88.

After an internal review, ALI Group reported to ASIC in December 2011 that from the time it was granted a financial services license in April 2003, ALI Group:

  • failed to notify ASIC of the appointment of all Authorised Representatives (ARs)
  • failed to include the relevant AR's details on ALI Group’s Financial Service Guides (FSGs), and
  • engaged in activities that weren’t part of their license terms.
  • ASIC will now require ALI Group to employ an external compliance consultant who will regularly report to ASIC until 30 June 2013. The consultant will report on matters including the number of ARs appointed, the number of insurance policy applications submitted by ARs, and the adequacy of compliance resources used by ALI Group.

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    Posted 20th June 2012 by David Jacobson in Corporations Act, Financial Services