Tricom, the stockbroker which failed to settle its trades by market deadline last year, has reached an agreement with ASIC to accept licence conditions on a number of Tricom entities.
“These conditions itemise policies that must be prepared and implemented over a three-month timeframe and also require a whole-of-business disaster recovery plan to be implemented within six months,” ASIC said.
Development and implementation of policies and procedures to ensure compliance with the licensees’ capital adequacy requirements and the introduction of a model to stress test capital adequacy requirements are issues to be addressed by Tricom Equities and Tricom Futures Services within the three months.
The conditions also require the setting of trading limits for clients and advisers and the development of policies for compliance audits.
There are also other measures to be undertaken by the Tricom entities, which include Glenbridge Asset Management, a responsible entity within the Tricom Group.
They will cover issues such as prevention of market misconduct, day-to-day supervision of Tricom representatives, the management of conflicts of interest, breach reporting and minimum levels of compliance training.
“ASIC will receive a series of reports from an ASIC-approved consultant over the next 12 months on the adequacy of these measures and their implementation,” ASIC said.
“ASIC has enforcement options available to it if an entity breaches its licence requirements.”
Late last January Tricom became the first broker in 33 years to fail to settle trades at the three-day deadline set by the market.
In a separate announcement yesterday, ASIC said it banned former Tricom authorised representative Peter Gordon Cameron from providing any financial services for six years.
