ASIC and Morgans Financial Limited have agreed for an independent compliance consultant to monitor, evaluate and report on Morgan’s implementation of recommendations arising from an independent review of its compliance measures.
The consultant completed its review of Morgans’ compliance measures in March 2016, in accordance with initial licence conditions imposed on 30 November 2015. In its report, the consultant has made recommendations for strengthening Morgan’s arrangements for monitoring and supervising its representatives, handling confidential market-sensitive information and managing conflicts of interest in relation to corporate transactions.
To address the recommendations made by the consultant, Morgans is undertaking work in an implementation plan and has engaged the consultant to carry out a review of this. Under the updated licence conditions, ASIC will receive regular progress reports throughout the implementation review and the consultant will provide its final report in November 2018.
Cathie Armour
ASIC Commissioner Cathie Armour said:
All Market Participants must ensure they maintain adequate monitoring and supervision arrangements. In addition firms must have robust controls pertaining to the proper handling of confidential information and management of conflicts of interest. These measures are fundamental to the community retaining trust in our financial markets.
ASIC acknowledges Morgans’ cooperative approach to improving its compliance standards and addressing ASIC’s concerns.