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Compliance  (GRC) Guides

What are gatekeepers in the regulatory structure?

 

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What are gatekeepers in the regulatory structure?

Gatekeepers are an important part of the regulatory structure in the Australian financial system. They are responsible for ensuring that investors are treated fairly, that risks are managed appropriately and that losses are compensated when they occur. In essence, gatekeepers are the primary guardians of the integrity of the financial markets and the regulatory obligations of companies. Gatekeepers are typically directors, financial planners and advisers, custodians, research houses, auditors, trustees and responsible entities. Directors are at the core of the gatekeeper role and are responsible for setting the tone of the company’s culture and ensuring compliance with the relevant regulations. They are also responsible for the implementation of internal auditing and compliance functions, as well as for the identification, escalation and reporting of any breaches to ASIC. Financial planners and advisers are also crucial gatekeepers in the regulatory structure, as they are responsible for providing advice to investors and ensuring that their interests are protected. They are expected to ensure that the investments they recommend are suitable for the investor’s needs and that they are adequately informed of the risks associated with their investments. Custodians are responsible for the safekeeping of investments and are expected to have strong internal controls and risk management processes in place. They are also expected to provide timely and accurate reports on the status of investments and to ensure that any losses are promptly reported. Research houses are responsible for providing independent and impartial research to investors. They are expected to provide unbiased advice and to inform investors about the risks and rewards of their investments. Auditors are responsible for conducting independent audits of financial statements and ensuring that the financial statements of companies accurately reflect the true financial position of the company. They are also responsible for ensuring that the company’s internal controls are adequate and that any risks are identified and managed appropriately. Trustees and responsible entities are responsible for the management of investment funds and are expected to ensure that the funds are managed in accordance with the relevant regulations and that investors are adequately informed of the risks associated with their investments. In summary, gatekeepers play a crucial role in the Australian financial system by ensuring that investors are treated fairly and that the integrity of the financial markets is maintained. They are expected to have strong internal controls and risk management processes in place, and to ensure that any losses are promptly reported and compensated. .



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