Posts tagged Smarter Compliance
June Update: Onward, ever upward

Smarter compliance. Welcome to the July 2019 update. We have big news. The financial service industry is highly regulated and surprisingly dynamic. Thankfully, the team behind our industry-leading compliance platform ensures openAFSL evolves even quicker. Regulators know that there’s a serious gap between what the law requires and what most Licensees manage to do - openAFSL helps you bridge that gap at a reasonable cost.

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Wants, needs and common confusion: distinguishing between goals and objectives

Smarter Compliance. Your client’s goals and objectives are the foundation on which great personal advice is built. Unfortunately, they are too often confused, used incorrectly or relegated in importance behind a client’s risk profile.  This article explains the difference between Goals and Objectives and provides some simple tips to avoiding common failures.

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April Update: Coaching, comparison and clarity

Smarter compliance. Welcome to the April 2019 update. We have big news. The financial service industry is highly regulated and surprisingly dynamic. Thankfully, the team behind our industry-leading compliance platform ensures openAFSL evolves even quicker. Regulators know that there’s a serious gap between what the law requires and what most Licensees manage to do - openAFSL helps you bridge that gap at a reasonable cost.

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What a Year. A summary of achievements and refinements.

Smarter Compliance. Happy New Year. 2018 was a challenging year for many Licensees but, for all its tension and drama, it highlighted problems that openAFSL solves and introduced new issues that we had anticipated. While others were caught flat-footed, our reg-tech platform quietly deployed the solution they needed. There’s still time for you and we’re happy to help. Call or email us to learn how OpenAFSL can ensure that you act “efficiently, honestly and fairly” in 2019.

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Head to Head: The MDA Guru on 2018

Smarter Compliance. Peter Turbach from MDA Guru believes that, as a result of FOFA, ASIC Regulatory Guide 179 (RG 179) and the Royal Commission, financial advisers, investment managers and MDA providers are struggling to identify how to identify the path forward in the face of regulatory ambiguity, legislative equivocation and uncertainty. In this article, Peter answers our questions and offers some thoughts and advice to advisers dealing with MDA and SMA.

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September Update: Connections, Conduct and Coding

Smarter compliance. We live in interesting times. While many participants are intimidated by the Royal Commission and ASIC’s Report 594, we just kept coding to ensure that OpenAFSL continues to deliver on its promise. We crushed it in September. The full list of tweaks, enhancements and innovations would overwhelm you but, in this article, we’ll cover some of the main ones.

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Adviser Q&A: Product Replacement

Smarter compliance. Good advice, as Sean Graham explains, demands solutions driven by the clients’ best interests and supported by the adviser’s bona fide consideration of alternatives. Very poor advice, in my experience, often fails to prioritise the clients’ interests. Poor advice, on the hand, often results from a failure to rigorously, efficiently or fairly considering options. The safe harbour steps require advisers to research products they’re recommending as replacements (and those they’re recommending to be replaced) but some advisers still struggle with the requirement. This article answers some of the questions we get from advisers on product replacement.

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Always on my mind: Licensees' approach to breach reporting

The Banking Royal Commission quickly and easily exposed profound and systemic non-compliance with the breach reporting obligations. Breach reporting may be "an important part of the regulatory framework" but the Commission’s hearings (and the Interim Report) show that, “on more than one occasion”, Licensees materially failed to comply with this obligation. Worryingly, they appeared to have suffered no consequences as a result of their failures. ASIC’s Report 594 on compliance with the breach reporting obligations highlights the extent of, and reasons for these failures. This article looks at three key take-outs for Licensees seeking to avoid regulatory censure.

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Compliance, Culture and Compliance Culture

Smarter compliance. Despite their focus on conduct and disclosure, Regulators are increasingly turning their attention to licensees’ ‘culture’. It’s a reasonable approach if one ignores the reality that the definition is circular and that organisational culture is not monolithic; most large institutions are collections of disparate and disconnected cultures. Nevertheless, Regulators show no sign of abandoning this idea, so Licensees must consider how they can best demonstrate a ‘good culture’ and their commitment to key principles. Drawing on international examples, this article proposes ways in which this can be done.

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“Welcome to McDonalds”: Five Take-outs for advisers

NSG v ASIC aside, financial planners often struggle to find cases that clearly address their legal obligations and duties. Thankfully, McDonald v AMP Financial Planning Pty Limited [2018] QSC 195 addresses both the practice and process of financial planning and, as a consequence, highlights expectations that advisers need to adequately consider in their own businesses. Here we look at five key take-outs from McDonald’s case.

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Compliance Reviews: Livin' on a prayer

Smarter compliance. For over ten years, in various iterations, we've worked hard to develop a credible and fact-based alternative to institutional box-ticking. Abandoning the bureaucracy and arbitrary classifications so loved by institutional licensees, we pioneered reg-tech and built a consistent and predictable risk and conduct-based methodology that embeds transparency, comparability and granularity. We appreciate that the "sweet science" of compliance is not for everyone, but everyone can benefit from a little more knowledge. Addressing three "key myths" might not change your life, but it might provide the context and reassurance you need. 

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Understanding compliance: The soundtrack

Most compliance people go through life with a song in their hearts and we’re no different (except are hearts and heads are stuffed with tangentially relevant pop music). Because no-one demanded it, we've made our playlist available to everyone. Our playlist contains every song referenced in our articles - even those you might not have identified. Enjoy the playlist and, if you find songs that we've omitted to include, please let us know.

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The writing’s on the wall: ASIC enforcement and focus

With the first half of the year now behind us, ASIC have recently released REP 585 (ASIC enforcement outcomes: January to June 2018). It highlights their activity in early 2018 (focusing on some notable successes) and looks forward to hint at what we can expect from them in the next six months. This article focuses on the report, ASIC’s plans for the remainder of 2018 and what they mean for Licensees and advisers.

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And another thing, I've been wondering, lately

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has identified so many cultural, ethical and management failures that vertical dis-integration, Product Intervention Powers, BEAR and the imposition of Principal Integrity Officers are needed to restore trust. Ignoring current and proposed "regulatory catalysts", I'd suggest that re-defining 'Compliance' is a critical step to restoring trust and creating transparency and accountability.

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August Update: Ready to Spring

If you're focused on the future, and want to build a sustainable advice business, you'll want to find out more about openAFSL. You know that “minimal or technical compliance with the law” is not a worthwhile pursuit and, as a competent Licensee, you understand that regulatory technology is critical to you achieving that goal. OpenAFSL is the flexible and intuitive platform you need. Here’s why.

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ASIC and the limits of disclosure

Licensees and advisers have traditionally relied on disclosure as the solution for a range of regulatory, advice and legal risks. The fundamental problem is that disclosure is a spectacularly ineffective consumer protection mechanism. In the context of the Banking Royal Commission, both the Government and ASIC are focusing on trust, transparency and accountability as better alternatives to disclosure and equipping ASIC with the powers it needs to be active, feared and effective. In this context, the course of action for licensees and advisers is clear - less disclosure, more clarity.

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Anticipating ASIC: Get your house in order

In his recent speech “The trust deficit and superannuation, ASIC Chair James Shipton suggested three issues that Licensees need to address to restore trust and confidence in the financial services industry.

This post explores those suggestions in context, and outlines some practical steps Licensees should take in anticipation of future ASIC activity.

Take the time now to get your house in order.

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Review and remediation: "make it right"

Monitoring and Supervision, Consequence Management and Remediation are three elements of a compliance framework that best highlight, or expose, a Licensee’s capability and competence. Not only do they reveal fundamental aspects of a Licensee’s organisational competence but, more importantly, they expose its values, principles and standards.

This article examines explores ASIC’s views and provides tips for better results.

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Once more unto the breach (register), dear friends, once more

The Royal Commission has highlighted some curious processes followed by some of the larger licensees. Their laidback approach to breach reporting, in particular, has attracted the type of attention they might otherwise preferred to avoid. Breach reporting isn’t that difficult to grasp, but perhaps everyone needs a little help from time to time.

This post covers the key things you need to know and the What, Why, How and When of breach reporting.

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Assessing Licensee risk: "Clowns to the left of me, Jokers to the right"

Choosing a licensee is a big decision and one that needs to be made after assessing the risks the prospective licensee poses to you. The reality is that neither qualifications nor adviser mobility are the best indicators of 'Licensee risk'. They are not even reliable predictors. Unfortunately, the underlying causes of licensee risk can't be accurately divined from publicly available data, or at least not without considerable time, energy and insight. This looks at some common risk indicators before focusing on the real issue.

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