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The conditions were imposed after ASIC undertook a risk-based surveillance of C&F and identified concerns that it did not have adequate arrangements in place to meet its various obligations as an AFS licensee.
C&F is the responsible entity of a registered mortgage scheme that currently has $24 million of funds under management and 250 active investors across 94 mortgages.
ASIC has varied the AFS licence for the company to include conditions requiring the appointment of an independent compliance consultant and for C&F to review, assess and report on the adequacy of the procedures on all aspects of its arrangements for compliance with its general AFS licensee obligations.
The independent expert will also provide recommendations about changes needed to improve C&F's compliance with its obligations and guide it in implementing a compliance framework that is of the required standard.
“Compliance should be at the heart of AFS licensees’ business operations to ensure they are fulfilling their legal obligations and instilling confidence in the public who deal with them. Where ASIC finds that is lacking, we will take steps requiring them to lift standards or risk removal from the market,” ASIC commissioner Greg Tanzer said.
ASIC acknowledges that C&F has been cooperating with ASIC to engage an independent compliance consultant to review its processes for compliance. The compliance consultant will report and provide recommendations which C&F will be required to implement.
ASIC will continue to monitor C&F's compliance via reports from the independent compliance consultant and C&F for 12 months.