ASIC is concerned with the adequacy and effectiveness of Kaz’s compliance framework, including how it monitors its advisers and whether it meets its compliance obligations under the Corporations Act.
As a result of ASIC’s enquiries, Kaz engaged an external consultant to review its compliance framework and provide recommendations for remediation. Kaz has advised ASIC that these recommendations have been implemented.
The additional licence conditions imposed by ASIC will require Kaz to appoint an independent expert to review the effectiveness of Kaz’s implementation of the recommendations ensuring they have been implemented in full, are operating effectively and whether any further action is necessary. The independent expert will report to both ASIC and Kaz in June 2019.
ASIC Commissioner Cathie Armour said ‘Licensees must have an adequate and appropriate compliance framework to govern the monitoring and supervision of their representatives. We expect all licensees to comply with this and will monitor their compliance closely.’
Kaz Capital provides specialised financial services to domestic and international high net worth clients, family offices, not for profit organisations and institutions. It was created following the Kazacos family sale of the KAZ Group Ltd a large multinational ICT company to Telstra in 2004 for $333 million.
Australian owned, Kaz Capital operates under an Australian Financial Services Licence (“AFSL” 384738). Kaz Capital promotes a culture of accountability and high performance with oversight from a formal corporate governance structure, delivered through an experienced Board of Directors headed by respected business entrepreneur Peter Kazacos.