A major review of RTE’s financial advice has concluded that it was not appropriate to use as a financial planning tool in recent years, but that it has now become the “gold standard” in the sector.
The review, commissioned by the government’s investment bank and published on Wednesday, said that the advice was not suitable for the time being because of “serious issues” with the company and its governance structure.
The report comes after a damning report into RTE by the Australian Financial Review (AFR) published earlier this month, which said the firm was “one of the most dysfunctional, incompetent, and dishonest institutions in Australia’s history”.
The review found that the firm’s board and management failed to properly vet its advice to clients and that the company’s own auditor found that its financial statements were “incomplete, misleading, and misleading”.
The AFR also found that RTE was “not able to provide an accurate representation of its own financial position”.
It also concluded that the RTVC had “failed to appropriately monitor its financial performance and has failed to maintain accurate records”.
The inquiry also found RTVCs own auditor, KPMG, had concluded that there was “no significant risk to the firm that its current financial position is materially affected by adverse events occurring in the industry”.
The audit concluded that: “There is no evidence that RTVCI’s current financial condition will materially change”.
A spokesman for RTVCC told the ABC that the review was “very premature” and that a full review was needed.
“We have been clear that we are committed to improving our financial advice and our internal processes, and we continue to review all our processes and policies, both on the corporate side and also on the financial side,” he said.
“However, in this case, a review is not in order.”
The spokesman added that RTR was still “working through” the review and that it is “important to note that our own financial audits have been completed, we have the compliance controls in place and we are working with the relevant regulatory authorities”.
“The review is a preliminary step and we will take the time to take further appropriate steps in the light of any lessons learned.”
The RTVCA’s board will now decide whether to take the review further.