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ASIC Accepts Enforceable Undertaking From Local Wealth Manager
Vanessa Doctor
3 September 2013
The , the former CEO of both companies. In an investigation into the firms' compliance systems in 2011, the ASIC found recurring compliance issues that have "resulted in a business culture that has not given sufficient priority to risk management, with consequent detrimental outcome for consumers." The undertakings require Wealthsure and Wealthsure FS to complete a programme to address this failure to foster and maintain compliance obligations. The programme will be reviewed by an independent expert, who will report to ASIC regularly until 2018. The EUs also require both companies to restructure their boards, where majority should be independent non-executive directors, and to replace Pawski as managing director. The ASIC said Pawski was instrumental in the firm's multiple failures and is now banned permanently from providing financial services, influencing company decisions and taking part in the management of any AFS licensee.