Australian Securities & Investments Commission imposes new licence conditions on Kalkine requiring an independent compliance review over unlicensed advice concerns

The Australian Securities & Investments Commission has imposed new conditions on Kalkine Pty Limited’s Australian financial services licence, requiring the firm to appoint an independent compliance consultant after ASIC concerns that Kalkine’s customer service representatives were giving unlicensed advice. The licence conditions require an external review of whether Kalkine’s customer interactions are compliant and whether its supervision mechanisms are adequate, with the consultant to report to ASIC. Where shortfalls are identified, the consultant will make recommendations and Kalkine must implement them. ASIC’s concerns included that representatives based in India may have provided personal advice in the sale of subscription services despite Kalkine being authorised to provide general financial product advice only, may have misrepresented the nature of the advice by describing it as general while leaving customers with the impression it reflected personal circumstances, and that Kalkine’s processes and controls may have been inadequate to ensure services were provided efficiently, honestly and fairly and within the scope of its licence. Kalkine agreed to the new licence conditions.