Australian financial services licensees must have “robust” recruitment processes to ensure staff meet required standards, the industry regulator has warned.

It follows recent action by the Australian Securities and Investments Commission (ASIC) against licensees including financial advisers and securities dealers.

Many affected staff then moved to new licensees, the regulator says.

“Where representatives have come from an environment in which there was a culture of poor compliance or poor-quality advice, appointing licensees need to take extra care to satisfy themselves that representatives are properly trained and monitored,” ASIC Deputy Chairman Peter Kell said.

The warning is relevant to all licensees, according to the regulator.

Current industry restructuring has increased the importance of high recruitment standards, Mr Kell says.

“Generally, licensees have good compliance and governance standards and ensure representatives go through rigorous checking before taking them on.

“However, we want to make sure all licensees are fully aware of the need to do this.”

ASIC will take action where practices are deficient, Mr Kell warns.