As outlined in s912A(1)(a) of the Corporations Act 2001, all AFS licensees have an obligation to ensure that their financial services are provided efficiently, honestly, and fairly.
Poor conduct by representatives undermines trust in financial planning and can result in significant losses to clients — putting retirement savings at risk. When compliance failures occur, licensees must have robust review and remediation processes in place to protect and compensate affected clients.
Review and remediation generally aims to place affected clients in the position they would have been in had the misconduct or compliance failure not occurred. The process involves:
- Determining who the potentially affected clients are
- Designing and implementing a comprehensive and effective process
- Communicating effectively with clients throughout
- Ensuring access to external review where the client is not satisfied with the outcome
We apply the principles of ASIC Regulatory Guide 256 in developing every review and remediation program, and we bring the operational experience to execute these programs efficiently and with minimal disruption to your business.
Facing a potential remediation situation? Early engagement makes a significant difference to outcomes.