An Australian Financial Services Licensee is required to have written procedures in place demonstrating its arrangements to comply with the requirements of section 912A of the Corporations Act
. Similarly, an Australian Credit Licensee (ACL) is required by law to have various compliance measures, “and a written plan that documents those arrangements and systems” in accordance with section 47 of the National Consumer Credit Protection Act 2009
There are many similarities between the obligations of licensees in section 912A and section 47.
So, we have developed a template procedures manual for use by dual licensees that addresses all of the obligations of AFSL and ACL holders and combines them into a single procedure applicable to the dual licensee as a whole, where appropriate.
For example, both AFSL and ACL holders and required to have an internal dispute resolution procedures that meets ASIC’s requirements as set out in RG165. The requirements in RG165 are the same for both licensees meaning that one procedure for a business that is both an AFSL and ACL holder will suffice.
Once tailored and implemented by you
, the combined procedures manual helps you address
the requirements of:
- the National Consumer Credit Protection Act
- the National Consumer Credit Protection Regulations
- ASIC Regulatory Guides and relevant Australian Standards
- Australian Credit Licence conditions
- the Corporations Act
- the Corporations Regulations
- Australian Financial Services Licence conditions
The manual includes the following procedures:
1. Compliance arrangements
2. Conflicts of interest
2.a. Ensuring clients are not disadvantaged by conflicts of interest (ACL)
2.b. Managing conflicts of interest (AFSL)
3. Dispute resolution
5. IT resources
6. Human esources
7. Handling clients’ money (AFSL only)
8. Maintaining adequate financial resources and records and compensation
9. Notifying ASIC of breaches and events (AFSL only)
11. Appointing a Responsible Manager and/or Key Person
13. Checklists for client files (AFSL only)
14. Ensuring appropriate information in promotional material / advertising
15. Risk management
16. Responsible lending (ACL only)
17. Consumer statements (Credit providers only)
18. Hardship (Credit providers only)
19. Small amount credit contracts (ACL only)
AFS/AC Licensee Procedures Manual cost
The cost of the complete AFS/AC Licensee Procedure Manual is $3,500 including GST.
Not all the procedures listed in the table will apply to the particular licensee. Some will need to be deleted (e.g. if you do not handle client money using trust accounts). Typically, a licensee would require between 11 and 15 of the 15 procedures, depending on its authorisations.
Is the manual exhaustive?
If the complete manual is purchased and then tailored to the licensee's business, there will be adequate documentation in place to make an AFS/AC licence application. Compact
has assisted many financial services businesses in obtaining their licence, and has drafted the Pro Forma Proofs which are required during the application process, and which reflect the procedures listed above.
There will also be adequate documentation which, if used and tailored correctly, would support the ongoing legal responsibilities of an AFS/AC licensee (however - the procedures would only support the legal responsibilities of the licensee if they were updated on a regular basis to reflect ongoing regulatory and business changes).
Once payment is received, each procedure is delivered instantly via email as a downloadable file(s) containing the relevant documents.
* None of these procedures will comply with the regulatory requirements if they are not correctly tailored to your particular business. Compact - Compliance & Training
is not responsible for the upkeep of these procedures once purchased by the licensee. The content of each procedure will vary depending on legislative and policy changes and updates, as well as the nature of the licensee. These procedures will be current on the date of purchase.
**This procedure is only organisational. It does not address financial reporting and financial auditing requirements.