ASIC has accepted an enforceable undertaking (EU) from Wealthsure Pty Ltd, Wealthsure Financial Services Pty Ltd and the former CEO of both companies, Mr Darren Pawski. An ASIC investigation into the companies’ compliance systems identified recurring deficiencies. ASIC found a business culture that did not give sufficient priority to risk management, with consequent detrimental outcomes for consumers.

The EU requires both Wealthsure companies to complete a program to address its compliance obligations. The program will be reviewed by an independent expert, who will report to ASIC regularly until 2018. The EU also requires both Wealthsure companies to restructure their board, including replacing Mr Pawski as managing director. Mr Pawski is also permanently prohibited from providing financial services and taking part in the management of, or exercising any influence in key decision-making by, Wealthsure as it relates to credit activities.