Australia orders Kalkine to hire consultant for advisory issues

ASIC is concerned that reps may have misrepresented the advice they are giving.

An Australian financial regulator has ordered Kalkine Pty Limited to appoint an independent consultant to address advisory concerns.

In a statement, the Australian Securities and Investments Commission (ASIC) imposed new licence conditions on Kalkine on the back of concerns that its customer service representatives were giving unlicensed advice.

These conditions require Kalkine to engage a consultant to review, assess and report to ASIC whether the company’s interactions with its customers are compliant and its supervision mechanisms are adequate.

Where shortfalls are identified, the independent compliance consultant is expected to make recommendations to address it, and Kalkine must implement the recommendations.

Amongst ASIC’s concerns include that Kalkine’s representatives, who are based in India, may have provided personal advice as part of the sale of subscription services when Kalkine’s AFS licence only authorised it to provide general financial product advice.

ASIC is also concerned that Kalkine’s representatives may have misrepresented to customers the kind of advice being given by qualifying this as general advice but leaving customers with the impression that the advice was directed to their own personal circumstances.

ASIC also said that Kalkin failed to do all things necessary to ensure that the financial services covered by its AFS licence were provided efficiently, honestly and fairly.

Kalkine has agreed to the new licence conditions being imposed.

Kalkine offers stock market insights and analysis. In its website, the company said that it provides “independent equity research based on technology-powered detailed analysis, and insights on various listed stocks for investors to analyse and action upon any Buy, Sell or Hold positions.”