ASIC releases FSR licensees' report card

On Monday 6th September 2004, ASIC released its report card on its randomly conducted visits on Australian Financial Services Licensees.

Over 350 visits were conducted between December 2002 and July 2004 to verify that the declarations made in Australian Financial Services license applications and the FSR-required procedures were operational.

The key results were that no further action was required in 46 percent of licensees, with the balance requiring some form of action to be taken by the licensee.

Key issues identified by ASIC include:

• deficiencies in compliance arrangements and monitoring and supervision of representatives;
• failure to prepare, calculate and maintain cash flow projections; and
• deficiencies in risk management arrangements.