Australian financial services licensees may have their reservations about whether the Financial Services Reform Act is good or bad, but the Australian Securities and Investments Commission (ASIC) is pretty happy with them, anyhow. The regulator issued a positive report yesterday after finding most of its 353 random verification visits turned up few problems.

The visits between December 2002 and last July were to check that declarations made in licence applications were true and that required procedures were in operation.

Deputy Executive Director FSR Pamela McAlister says most of the licensees demonstrated that appropriate procedures are in place and working well in practice. “Where ASIC identified deficiencies, these issues were generally straightforward and easily addressed by the licensee.”

Further compliance reviews will be undertaken in a “small number” of cases.

“ASIC views verification visits as an opportunity to test how the industry has responded to the new financial services regime and to provide practical guidance to licensees about how to operate in a compliant manner,” Ms McAlister said.

But it’s not an occasion to relax: licensees have also been warned: random visits are an ongoing part of the compliance program.