ASIC cracks down on Kalkine’s alleged unlicensed financial advice
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The news: The Australian Securities and Investment Commission has imposed new financial licence conditions on equity research firm Kalkine amid concerns its customers service representatives based in India were giving unlicensed advice.
The context: The new licence conditions require Kalkine to engage a consultant to review, assess and report to ASIC whether Kalkine’s customer interactions are compliant and supervision mechanisms are adequate.
Kalkine is required to implement the recommendations made by the compliance consultant.
ASIC is concerned that Kalkine’s India-based representatives may have provided personal advice as part of the sale of subscription services despite the company only being to provide general financial product advice.
The financial regulator is also concerned that the advice was misrepresented by saying it was giving customers general advice but leaving the impression that it was directed to their personal circumstances.
ASIC alleges Kalkine failed to do all things necessary to ensure that the financial services covered by its Australian financial services licence were provided efficiently, honestly and fairly.
What they said: “‘As a result of our investigation we remain concerned that Kalkine fell short in meeting its obligations, leading ASIC to take the significant step of imposing new licence conditions. Kalkine will now undergo an external review to ensure it acts lawfully and within the scope of its licence,” ASIC deputy chair Sarah Court said.
The source: ASIC media release
