ASIC said Mr Pawski, in his role as the most senior member of Wealthsure’s compliance committee (from 26 August 2009) and a Wealthsure senior executive, failed to employ an appropriate monitoring and supervision program reviewing advice provided by the group’s authorised representatives.
He also failed to ensure the group adopted an appropriate compliance risk management program or addressed the competence and training needs of its authorised representatives.
Under the EU, Mr Pawski has agreed not to attempt to influence any current or future shareholder or executive of the group in respect to the Wealthsure business, act as a representative of an Australian financial services licensee or hold out that he is in any way authorised to provide financial services.
The EU requires Wealthsure and Wealthsure FS to complete a program to address its failure to foster and maintain a proper commitment to its compliance obligations, ASIC stated. The program will be reviewed by an independent expert, who will report to ASIC regularly until 2018.
The EU also requires Wealthsure and Wealthsure FS to restructure their board. Wealthsure must replace its managing director, Mr Pawski, and both Wealthsure and Wealthsure FS must maintain a majority of independent non-executive members on their boards.
If Wealthsure or Wealthsure FS breach terms specified in the EU, they must cease providing financial services and credit activities until ASIC is satisfied they should be allowed to continue, ASIC said.
In the fallout from a court case against the group, decided in June, the group’s new chief executive, David Newman, said the group would be introducing a new business model and since his involvement with Wealthsure, the company “has terminated approximately 90 authorised representatives”.
