ASIC's Sanlam blitz sparks calls for 'shadow licence' reform
Compliance experts are calling for an opaque feature of Australia's financial services industry allowing smaller players to rent key regulatory licences to be reformed.
Compliance experts are calling for an opaque feature of Australia's financial services sector to be reformed after the corporate regulator launched a crackdown on one of the country's biggest 'licence for hire' firms.
Capital Brief this week revealed ASIC has been closely monitoring Sanlam Private Wealth, a division of South African financial services conglomerate Sanlam, which is listed in Johannesburg and valued at about $11 billion.
Sanlam Private Wealth rents out its financial services license to some of the country's biggest neobroking firms such as Stake and Pearler, which cumulatively support more than 1 million investors.
The regulator has issued a range of notices requiring Sanlam to hand over information relating to how it manages its many authorised representatives and keeps them compliant with Australian regulations.
