Additional licence conditions have been placed on Poynter Hargraves Financial Consultants after it was found to have poor risk controls around conflict management and other lapses, the Australian Securities and Investments Commission (ASIC) says.

ASIC carried out a “targeted surveillance” on the SA-headquartered wealth management firm where it found the business was not adequately monitoring and supervising its representatives. In some cases, clients had been given financial advice that failed the best interests duty and other related obligations.

The extra conditions set out by the corporate regulator requires the business to hire an independent expert to review and make recommendations on how its audit processes and conflict management can be improved.

The expert must also pre-vet a sample of advice and report on the effectiveness of the improvements made by the business, which offers a range of services including life insurance advice.

Poynter Hargraves will also be required to remove its sole responsible manager and appoint one or more responsible managers with the necessary skills and experience.

The new conditions were imposed by consent following the firm’s engagement in addressing ASIC’s concerns.

“[Australian Financial Services] licensees are responsible for ensuring their representatives comply with financial services laws,” ASIC said.

“ASIC expects licensees to have robust controls in place for managing conflicts of interest and adequate audit processes to monitor and supervise their representatives.

“AFS licensees should conduct sufficient periodic audits of all their advisers and use suitably qualified staff to conduct these audits.”