We're joined by Samantha Carroll who's a Special
Counsel in the Governance and Compliance Group at Clayton Utz and
joins us from Brisbane; Samantha welcome to BRR Media.
Now Samantha mandatory compliance for FOFA of course
commenced on 1 July. Is there a sense that the industry is well
Generally many licensees undertook significant implementation
projects in-house, so it's difficult for us to comment
holistically on the industry, but in general terms from the people
that we dealt with there appears to be a readiness for FOFA on 1
And Samantha what do you see as the key issues facing
AFS licence holders or Australian Financial Services licence
holders in relation to governance risk and compliance?
For us there's probably four key issues. The first in
general terms would be monitoring and supervision, particularly in
the context of the best interest duty and the need to maintain
quality advice. And in that context specifically we think
there's a challenge in balancing advisers showing evidence of
independent judgment in the advice they're providing to their
clients whilst maintaining the quality that's required under
the duty. And we also think there's a challenge in ensuring
that adequate file records are kept for each client and
particularly for evidentiary purposes down the track. And finally
maintaining compliance in an area of increasing regulation is a
challenge as well.
Well as we mentioned of course mandatory compliance has
been in since 1 July, but are there any last minute
At this point in time it's probably a good idea to undertake
a bit a health check on your implementation projects and see where
you may need to back fill some tasks that you didn't quite get
around to before the 1st of July that were less material for the
commencement. And then we would recommend probably in six to 12
months' time undertaking an implementation check to ensure that
what you have implemented is working in practice.
Well some good advice there, Samantha thank you so much
for joining us.
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
Persons listed may not be admitted in all states and
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In the years following the global financial crisis of 2008 many Australian investors lost their life savings as financial products failed and the Australian Stock Exchange shed over 3,000 points.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).