South African financial services giant Sanlam under ASIC scrutiny in 'shadow licensing' clampdown
ASIC is closely monitoring a financial services conglomerate providing key licences for neobrokers servicing more than 1 million investors, including Stake and Pearler.
A South African financial services conglomerate supporting some of the country’s largest neobrokers including Stake and Pearler is being closely monitored by the corporate regulator ASIC as part of a clampdown on "licensee for hire" firms.
Capital Brief has established that ASIC has launched a probe into Sanlam Private Wealth, which rents out its Australian Financial Services Licence (AFSL) to a multitude of investment platforms and wealth businesses, legally allowing them to operate in Australia.
The regulator has issued a range of notices to Sanlam, requiring the business to hand over information relating to how it manages its many authorised representatives and keeps them compliant with Australian regulations.
Sanlam Private Wealth is an Australian division of Johannesburg-listed Sanlam, an insurance and financial services group which has a market capitalisation of about $11 billion.
