Dealer group Professional Investment Services (PIS) has entered into an enforceable undertaking (EU) with ASIC following concerns over the firm's compliance with industry laws.
In a statement from the corporate regulator, PIS has entered into the undertaking because of ASIC concerns it may have failed to comply with its obligations as an Australian financial services licence holder based on the results of surveillances by the corporate regulator.
As part of the undertaking, PIS has agreed to engage an independent expert to review and make recommendations on its compliance with specific areas addressed in the EU, including arrangements for the management of conflicts of interest; significant breach reporting; dispute resolution system; monitoring and supervision of authorised representatives; adviser training and competence and compliance culture.
PIS has the opportunity to rectify any deficiencies identified by the independent expert over about 12 months including the implementation of a compensation process for PIS to compensate clients for any loss suffered arising out of deficiencies identified, the statement said.
Confirmation of the EU comes a month after the managing director of the firm's parent company dismissed suggestions the firm was involved in potential EU discussions with ASIC.
In November, Professional Investment Holdings managing director Grahame Evans denied the firm was facing an EU, saying the suggestion might have been confused with the group's ongoing involvement with ASIC.
The company's June 2010 audited financial statements released on 30 September stated PIS, was subject to ASIC's ongoing surveillance during the year ending 30 June 2010.
