AUSTRALIA has long been home to one of the world’s most successful consulting firms, with FTI consulting having become the world leader in providing services to the financial services industry.
The new chief executive of FTIC Consulting, Andrew Devereux, has been named as an advisor to the firm.
“We’ve been here for 35 years, we’ve built the industry, we know the ropes,” Mr Devereaux told reporters.
“What we want to do is take that expertise and take it to more places.”
Mr Deveaux has been working for the firm for four years.
The firm’s advisory committee consists of a former president of the New York Stock Exchange and former chairman of the International Federation of Credit Rating Agencies, Mr David Zukunas.
Mr Deveyaux’s appointment comes just weeks after the Australian Government confirmed it was considering moving the Australian Federal Government out of FTICA and into FTIC.
While Mr DeVEaux is not the first FTIC director to join the advisory group, the announcement comes less than a week after the firm was forced to close its operations in Canada, following an investigation by the Australian Securities and Investments Commission (ASIC).
“Our clientele is a diverse group of clients, including banks, financial institutions, insurance companies, retail investors, government agencies, and individuals and companies who want to be able to do more business in Australia,” Mr Zukuna said.
“The ACCC has identified significant concerns regarding the FTIC structure and it is appropriate to conduct a full and thorough investigation into this matter.”
“FTIC’s strategy of providing advice and advice services to our clients is very well established and our clientele includes a range of businesses, including the financial institutions and insurance companies.”
Mr Zukias said it was critical that FTIC’s advice and advisory services continued to operate in Australia.
“There is a lot of information out there that shows how bad FTIC is,” he said.
“[The] only way that we can get out of this mess is if we are prepared to step up and do something different, and that’s what we are going to do.”
The ACCAC investigation into FTI found that FTI failed to provide adequate customer services and that it was not able to provide accurate information about its products and services.
The ACCAC also found that a significant proportion of the clients were not properly informed about their rights, obligations and rights under Australian law.
The inquiry into FTICS, which also found FTIC had a culture of deception and poor governance, also found the company did not properly protect the interests of clients and failed to monitor the activities of those it advised.
The investigation found that the company had not complied with certain financial advice laws and had misled clients about its services.
FTI’s chairman, Peter Tillett, has repeatedly defended the firm’s actions, and said in a statement that the ACCC’s findings “cannot and should not have been used as grounds for terminating the business”.
“I believe the ACCAC made a very difficult decision and they have made the right decision in doing so,” he added.
Earlier this year, the company announced it would be closing its Melbourne offices and moving its operations to Singapore.
Last year, FTIC paid $1.4 million in fines to the Australian Competition and Consumer Commission and was ordered to repay $5.4m.
It also paid $6.2 million in compensation to the ACC and the ACCCA.