The Australian Securities and Investments Commission (ASIC) announced it has accepted an enforceable undertaking (EU) from Halifax Investment Services, following a surveillance of the company.
ASIC's surveillance found deficiencies in Halifax's risk management and compliance. Halifax must now appoint an independent consultant to review its business and develop a plan to rectify the deficiencies.
Over six months in 2012, ASIC's review found licence compliance issues with Halifax's financial services practices, including issues with supervision and monitoring of representatives.
ASIC also found compliance issues related to the training and professional standards of representatives, and the processes for the authorisation and publication of marketing materials.
Although ASIC acknowledged Halifax's cooperation, ASIC deputy chairman Belinda Gibson said today's outcome should "send a warning" to securities dealers.
"[The EU] requires Halifax to rethink significantly the way it monitors its representatives and to create a culture where compliance is central to the services it provides," Ms Gibson said.
If the review finds a client has been adversely impacted by Halifax's conduct, Halifax is required to consider the circumstances and remediate the client where appropriate.
The independent consultant will report regularly to ASIC over the next year regarding Halifax's implementation of the plan.
