Australian Life Insurance Distribution (ALI Group) has been hit with additional compliance conditions after failing to comply with a number of its obligations as an Australian financial services licensee (AFSL).
In December last year, the Sydney-based insurance group informed ASIC of its failure to notify it of the appointment of all authorised representatives (AR), ASIC said in a statement.
The group also failed to include AR details in its financial services guides, and engaged in activities outside its licence terms since it was granted an Australian financial services licence in April 2003.
As a result, ALI Group is now required to employ an external compliance consultant to regularly report to ASIC until 30 June 2013.
The consultant will report to the corporate regulator the number of ARs appointed, the number of insurance policy applications submitted by ARs, and the adequacy of compliance resources used by ALI Group.
“Confidence in the financial services industry depends on licensees having robust compliance procedures in place, supported by appropriate competencies, resources and a culture of compliance,” ASIC commissioner Peter Kell said.
“ASIC will intervene to impose more onerous licence conditions to satisfy us and the broader community that licensees are meeting the standards expected of financial services participants.”
ASIC acknowledged ALI Group proactively engaged an independent compliance consultant to identify and address its compliance issues.
