ASIC has imposed conditions on the Australian financial services licence of Western Australia-based Addwealth Financial Services (Addwealth FS) following surveillance of its advice business.
As part of the conditions, Addwealth FS has appointed an external compliance consultant who will regularly report to the corporate regulator over the next 15 months.
The consultant will test and report on Addwealth FS's overall compliance arrangements and the quality of financial product advice provided to clients.
They will also test and report on the advice given with respect to Adwealth FS's investment in the Addwealth Achiever Fund.
The regulator said it was concerned Addwealth FS might have failed to provide appropriate advice to clients and might have failed to have adequate arrangements to manage conflicts of interest.
ASIC commissioner Peter Kell said the regulator would seek the "imposition of more onerous licence conditions and independent oversight" where there were concerns advice might not be meeting the required standards.
The regulator said it acknowledged Addwealth FS agreed to the appointment of the consultant to identify and address its compliance issues.
Addwealth FS provides advice on products and services including retirement planning and strategies, superannuation, self-managed superannuation, share market investments and managed funds.
