Surveillance by ASIC found that Otium advisers had used a "one size fits all" advice model, advised clients to switch superannuation funds when it was inappropriate to do so and failed to demonstrate the ability, professional skills and knowledge required to competently provide financial product advice.

ASIC said it was concerned that AIW may have “failed to take reasonable steps to ensure that its representatives complied with financial services laws, and that it did not have available adequate resources to provide financial services and to carry out supervisory arrangements”.

“Under the EU, AIW acknowledges that these concerns are reasonable, and will engage an independent expert to assess, make recommendations and report on the effectiveness of its policies and procedures,” said ASIC.

“This will also include a review of a sample of Otium client files to test AIW's file review methodology and compliance with the Corporations Act.”

ASIC acknowledged the co-operation of AIW in connection with the surveillance.