1. Presenter: Rae Stagbouer Professional Standards Officer
December PD Day
Compliance Update
Presenter: Rae Stagbouer
Professional Standards Officer
Friday 17th December 2010 1

2. Agenda Compliance Reviews 2010 & 2011.
Margin Lending variation – what now?
Australian Credit License (ACL) update.
Conflict of Interest & Soft Dollar Guidelines.
Compliance Survey. 2

3. Compliance Reviews 2010 & 2011 The compliance reviews for 2010:
By the end of 2010, around 95% of all the reviews will have been completed.
Throughout we have been trialing our new process and reporting system. We have had some great feedback over the year and will continue to
improve the system for 2011.
Compliance review trends in 2011:
The overall standard is high;
The bulk of compliance issues identified are low level/administrative;
The last year has shown a significant increase in the compliance standards. 3

4. Compliance Reviews 2010 & 2011 The compliance reviews for 2011:
The Capstone Compliance Team will be contacting each practice in early
2011 to arrange our review schedule for the year.
Please advise us as soon as possible if you cannot attend the
proposed time.
We will do our best to find a time to suit you. 4

5. Margin Lending variation – what now?
Training:
For those who have successfully completed the training:
Forward a copy of your results to Carolyn Coverdale;
Adviser Profiles will be automatically updated in January 2011;
If you wish to revise your Adviser Profile, please advise Carolyn
when you send your accreditation or advise Sarah McFadyen
by 18th January 2011.
For those who have yet completed the training:
Complete your training by 30 June 2011;
Provide Capstone with a copy of your accreditation;
Capstone can assist you to book a training course;
If you are unable (or do not intend to) undertake the training
by 30 June 2011, please advise Capstone so that the
appropriate steps can be taken. 5

6. Australian Credit License Update
Application: submitted, we await ASIC’s reply.
Becoming an Australian Credit Representative:
All current Authorised Representatives are welcome to become
ACRs of Capstone;
Capstone will contact all advisers in early 2011 for expressions
of interest;
If you are unsure if you will need to become an ACR to continue
to offer your clients the same service and products,
please call Richard or Rae.
ACL Documentation:
Australian Credit Guide (like the FSG for the AFSL)
Adviser Profile
Website Update 6

7. Australian Credit License Regime
When are you providing credit assistance?:
If you suggest that the consumer:
Apply for, increase their credit limit in, or remain in, a particular credit contract.
If you assist a consumer to:
Apply for, increase their credit limit in a particular credit contract.
If you act as an intermediary between a lender or lessor and a consumer with the aim of obtaining credit or a consumer lease
for the consumer. 7

8. Conflict of Interest & Soft Dollar Guidelines
Soft Dollar Guidelines have been released and will be effective 1st January 2011.
We have provided a copy to you as an appendix to this presentation.
Summary:
Definitions of Conflict of Interest & Soft Dollar Benefit;
Disclosure in the register of Soft Dollar Benefits > or = $300;
Disclosure of all Conflicts of Interest;
Seek prior approval for all Soft Dollar Benefits that are incentive driven or recurring;
An overview of how Capstone Manages Conflicts of Interest
& Soft Dollar Benefits. 8

9. Compliance Survey
The Compliance Team at Capstone will be sending you a survey
in February 2011.
We are surveying all the features of the current compliance offering;
We will use the information to assess the effectiveness of compliance
tools and undertaking;
We hope that you will provide honest feedback to help us shape the compliance environment at Capstone. 9

10. Question Time That concludes my presentation for today
Are there any questions? 10

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