ASIC imposes licence conditions on Kaz Capital
Australian regulator ASIC has just announced that it has imposed additional conditions on the Australian Financial Services (AFS) license of the company Kaz Capital Pty Ltd (Kaz).
Kaz Capital provides general financial product advice on certain deposit and payment products, derivatives, securities, and managed investment schemes. The company provides specialized financial services to domestic and international high net worth clients, not for profit organizations and institutions. Australian owned, Kaz Capital operates under an Australian Financial Services Licence (“AFSL” 384738).
The regulator is concerned with the adequacy and effectiveness of Kaz’s compliance framework, including how it monitors its advisers and whether it meets its compliance obligations under the Corporations Act. As a result of ASIC’s inquiries, Kaz engaged an external consultant to review its compliance framework and provide recommendations for remediation. Kaz has advised ASIC that these recommendations have been implemented.
According to the official statement, the additional license conditions imposed by ASIC will require Kaz to appoint an independent expert to review the effectiveness of Kaz’s implementation of the recommendations ensuring they have been implemented in full, are operating effectively and whether any further action is necessary. The independent expert will report to both ASIC and Kaz in June 2019.
Cathie Armour, ASIC Commissioner, has commented on the ASIC’s order: “Licensees must have an adequate and appropriate compliance framework to govern the monitoring and supervision of their representatives. We expect all licensees to comply with this and will monitor their compliance closely.”