The Australian subsidiary of the South African financial giant Sanlam Group will undergo a compliance review by an independent expert following admissions of breaching its licensee obligations.
Australian Arm of Sanlam Group to Have Compliance Processes Reviewed After Breaching Licensee Obligations
It follows the Australian Securities and Investments Commission’s (ASIC) investigation, which revealed deficiencies in Sanlam Private Wealth Pty Ltd’s oversight of its authorised representatives and corporate authorised representatives (CARs).
ASIC said in a press release Monday that it found Sanlam failed to supervise its 42 CARs and 71 authorised representatives adequately, many of whom offered high-risk financial products, including fintech and crypto-based investments, to retail clients.
The breaches were outlined in a court enforceable undertaking (CEU) provided to ASIC.
ASIC Deputy Chair Sarah Court stated, “[Sanlam] had plainly inadequate resources and processes to ensure its diverse cohort of authorised entities complied with the law and to oversee those who used its licence to offer risky financial products to retail clients.“
The investigation identified systemic failures, including inadequate risk management, a lack of skilled compliance staff, and insufficient training programs.
Under the CEU, Sanlam must appoint an ASIC-approved independent expert to review its compliance processes and systems.
Sanlam has held an Australian Financial Services (AFS) licence since 2009, enabling it to provide financial services to retail and wholesale clients.
