Consultancy saddled with additional AFSL conditions

ASIC has hit the company with the requirements after targeted surveillance ruled the firm had poor risk controls around conflict management and was not adequately monitoring and supervising its representatives.

The regulator also found that some clients were provided with advice that failed to meet to meet the best interests duty and related obligations.

The additional licence conditions will require Poynter Hargraves to remove its sole responsible manager and appoint one or more responsible managers with the necessary skills and experience.

Poynter Hargraves will also be required to engage an independent expert to review and make recommendations on how its audit processes and conflict management can be improved.

The independent expert must also pre-vet a sample of advice and report on the effectiveness of the improvements made by Poynter Hargraves.

The firm agreed to the conditions following engagement with the regulator, addressing its concerns.

Poynter Hargraves has held its AFSL since 5 July 2010.