Financial Services Audit & Breach Notification Project

Financial Services Audit & Breach Notification Project

An Australian-based Financial Services licensee had concerns about the advice being provided by one of their advisers. They needed to review over 70,000 documents in order to prepare a report for one of Australia’s key financial services regulators, the Australian Securities and Investments Commission (ASIC). Frisk saved the licensee months of manual work, delivering results within hours. In addition, it identified several issues that were missed with a manual review.

 

Problem Solution Benefits
An Australian Financial Services Licensee had to review 70,000 documents held in a financial planning business they had taken control of, in order to identify and document compliance breaches.

 

Following a lengthy manual process, FISC was deployed to help locate targeted documents. Despite several months of reviewing the work manually, it took FISC just a few hours to identify a number of unnoticed compliance breaches and understand their prevalence across the entire dataset.
  • Reduced time to locate and document compliance breaches.
  • Able to identify breaches that a manual review process had missed.

Problem

An Australian based Financial Services licensee had concerns about the advice being provided by one of their advisers. They needed to review over 70,000 documents relating to the advice firm and prepare a report regarding the areas of concern for one of Australia’s key financial services regulators, the Australian Securities and Investments Commission (ASIC). Prior to Frisk’s engagement, the licensee had already been reviewing documents manually for months, to prepare the report for ASIC. As per the licensee, all the issues had been identified, and it was now only a matter of locating relevant documentation to substantiate the report. It was critical that the audit was complete and comprehensive to ensure there was no omission of key issues from the report to ASIC.

Solution

Frisk was configured to rapidly index files across several sites and locate key documents required for the report. The compliance team was then able to complete their analysis within hours, a process that had previously been managed over a period of several months. In addition to confirming known issues and locating all the required documents, by using Frisk, the compliance team was able to identify otherwise unknown issues including:

  • Invoices that incorrectly directed payment to the adviser rather than the licensee.
  • Instances of recommendation of non-approved investment products such as works of art.

These issues were missed during the manual review and indicated serious breaches. Using a series of search terms related to the organisation’s key risk indicators, Frisk enabled the identification of additional areas of potential breaches. It also provided a streamlined process to investigate and collate all the supporting documentation that was required to be presented to the regulator.