Smarter Compliance. This lucky-dip of compliance and regulatory treasures offers ASIC’s recent admission that disclosure might not always work (with accompanying research), ASIC’s disclosure of the risks of inappropriate SMSF advice (with fact sheet) and a summary of APRA v KELAHER. We also look at a wonderful HBR article on why compliance programs fail and end with a number of articles on Daniel Kahneman. This post contains almost everything a Compliance and Risk Expert needs for their professional development.
Smarter Compliance. Unless you’ve just emerged from a decades-long coma, you probably realise that few licensees (particularly few large and vertically-integrated licensees) have effectively managed non-financial risks or ensured they operated “efficiently, honestly and fairly”. Some of this may have been intentional but, perhaps unknowingly, their failure to recruit and retain capable, confident and courageous compliance talent was a key reason for their public failures. This article looks at curiosity and shows why its critical to an effective compliance function and a sustainable advice business.
Smarter Compliance. Many licensees have, traditionally, treated compliance as a ‘necessary evil’ or a function generally irrelevant to their day to day activities. Fortunately for consumers, the Royal Commission publicly highlighted the consequences of this approach. The grudging acceptance of ‘compliance’ has now been replaced with a more polished rhetoric, but in an environment characterised by increased public scrutiny and an increasing appetite for litigation this may not be enough. This article argues for the need to pre-empt legislative changes by adopting a forward-looking approach to compliance; it’s simply better business.
Smarter Compliance. In an industry both riven and driven by technological change, financial advisers have been slow to take advantage of the convenience the law provides to them. This article, focusing on Ongoing Fee Arrangements and Renewal Notices explores how, and to what extent, paper forms and wet signatures are legacy issues that can be replaced and optimised.
Smarter Compliance. Not all compliance providers are the same and, in a complex and frequently changing environment, not all providers have the systems, experience and insights you need to thrive. Even those that do bring more to their services than just experience and expertise. Whether your Auditor takes a formal or substantive approach to assessing your compliance, they also bring their own preferences, preferences and beliefs to your review. This article addresses some of the common biases that may impact on your review and suggests more than a few ways to mitigate their impact.
Smarter Compliance. While you may have dismissed your Compliance Manager’s obsession with effective management as an obvious and transparent attempt to secure significance, the reality is that your governance framework - and your demonstrable commitment to good governance - is the foundation of your compliance framework. Without an effective governance framework, you cannot, and will not, comply with the financial services laws and the conditions of your licence. This article explains why good governance matters and provides tips for improving your decision making framework and its consistent and deliberate application.
Smarter Compliance. Although it’s popular to dismiss the core of ASIC’s report on ongoing service as the inevitable consequence of vertical integration, inadequate resourcing and legacy issues, the perceived complexity of the disclosure and engagement processes introduced by FOFA played a part. Although competent Licensees and capable advisers embraced and operationalised these requirements, they still have questions. Here are five of the most frequently asked questions.
Smarter Compliance. Our Licensee Review assesses a licensees’ compliance risk framework including their systems, structure, policies, processes and people. Too frequently, Licensees focus their attention on outputs – advice processes and associated risks – rather than on the talent on whom they depend to provide efficient, honest and fair financial services. This article focuses on the ASIC’s expectations and the policies required to recruit, promote and manage staff in a manner consistent with the law and good industry practice.
Smarter compliance. If you were registered on the adviser register prior to 1 January 2019, and preparing for the exam or the qualification, you’ve been given a temporary reprieve. The Assistant Minister for Financial Services, Superannuation and Financial Technology, Jane Hume, has thrown you a lifeline by announcing a 2-year extension for the FASEA qualification to 1 January 2026, and a 1-year extension for the FASEA approved exam to 1 January 2022. This article explores the deferment and its practical impact. It even offers practical solutions for those advisers hanging on by their fingertips and wondering how to move forward.
Smarter Compliance. The US Department of Justice asks three fundamental questions when reviewing corporate compliance programs 1. Is it well designed 2. Is it implemented effectively 3. Does it work in practice. We believe that local Regulators take a similar approach and this underpins our conviction that regulatory technology - like OpenAFSL - is the future of advice. You may have a different view but this article contains arguments that should convince any reasonable Licensee that we’re right.